New Delhi – In a stunning move against one of the world’s most powerful trading firms, India’s market regulator has temporarily banned quant giant Jane Street from its securities market and seized a staggering $567 million in what it calls illegal gains.
The decision by the Securities and Exchange Board of India (SEBI) follows a meticulous three-year investigation that concluded the Wall Street behemoth had engaged in a sophisticated scheme to manipulate key Indian market indexes.
At the heart of the accusation is a “brazen” strategy targeting indexes like the Nifty 50 and the Bank Nifty. According to SEBI, Jane Street would first place massive buy orders for stocks and futures, artificially influencing the market. Immediately after, the firm would place bets that profited from the index falling, and then quickly sell off its initial holdings to trigger that fall, cashing in on the manufactured volatility.
The alleged scheme was so apparent that it was visible to other market professionals in real-time.
“As an options trader, I could see the manipulation happening live on the screen, and so could other traders on every expiry day,” said the president of a UAE-based hedge fund who requested anonymity.
SEBI’s order was unequivocal. The regulator has impounded 48.4 billion rupees ($566.71 million), the full amount of the alleged illicit profits, and has barred the firm from any trading activity.
“[Jane Street] entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly,” SEBI stated in its official order.
This decisive action against a firm of Jane Street’s stature sends a powerful message about India’s commitment to protecting market integrity and signals a new era of strict enforcement for global players in its booming financial ecosystem.
