Indian Regulator Bars Jane Street, Impounds $566M in Manipulation Probe
India's Securities and Exchange Board (SEBI) has prohibited U.S.-based Jane Street Group from accessing the Indian securities market. The regulator's order, posted online, states that Jane Street's entities are barred from trading securities in India, directly or indirectly.
SEBI has also impounded over 48.4 billion Indian rupees, equivalent to $566.3 million, from Jane Street, citing alleged illegal gains. Banks have been instructed to prevent any debits from Jane Street's accounts without SEBI's express permission.
Allegations of Market Manipulation
The investigation centers on Jane Street's alleged manipulation of the Nifty 50 index, India's benchmark stock index. SEBI claims the firm used various strategies to artificially inflate the index to profit from substantial positions in index options.
The regulator pointed out that manipulative trading continued even after a warning letter was issued in February 2025. SEBI had previously voiced concerns about algorithmic trading, reporting in September 2024 that such practices allowed proprietary traders and foreign portfolio investors to gain 610 billion Indian rupees in FY 2024, while retail investors incurred equivalent losses.