The Securities and Exchange Board of India (Sebi) has barred four entities linked to the Jane Street Group from the Indian securities market and seized over \u20b94,000 crore in alleged illegal gains, citing manipulative and fraudulent trading strategies in index options.<\/p>\n
In a 105-page interim order, Sebi accused the US-based proprietary trading giant of deploying two expiry-centric strategies\u2014dubbed Intra-day Index Manipulation<\/em> and Extended Marking the Close<\/em>\u2014across at least 18 trading sessions between January 2023 and May 2025.<\/p>\n Sebi detailed how the group allegedly moved prices in the cash and futures markets to benefit its massive options positions.<\/p>\n In the Intra-day Index Manipulation<\/em> strategy (seen on 15 days), Jane Street entities bought heavily into Bank Nifty stocks in the morning while taking large bearish positions in options, then quickly reversed their stock trades later in the day to push down the index and profit from their options bets.<\/p>\n<\/li>\n On 17 January 2024, they booked a loss of \u20b961.6 crore in cash and futures but earned \u20b9735 crore in options by day\u2019s end.<\/p>\n<\/li>\n In the Extended Marking the Close<\/em> strategy (observed on three days), the firm allegedly moved prices during the last hour of trade to secure favourable settlement levels for its open options positions.<\/p>\n<\/li>\n<\/ul>\n Sebi called the trades \u201cdeliberate, premeditated, and designed to mislead other participants,\u201d describing the scale and intensity of interventions as lacking economic justification.<\/p>\n The barred entities \u2014 Jane Street Singapore Pte. Ltd., Jane Street Asia Trading Ltd., JSI Investments Pvt. Ltd., and JSI2 Investments Pvt. Ltd. \u2014 operated as a \u201csingle economic group,\u201d the order said.<\/p>\nHow the Strategies Worked<\/h2>\n
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Entities Barred & Findings<\/h2>\n