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Market regulator SEBI is expected to broaden its ongoing investigation into US-based trading firm Jane Street
SEBI Bans Jane Street From Indian Stock Market
Market regulator SEBI is expected to broaden its ongoing investigation into US-based trading firm Jane Street, extending the probe to include alleged manipulation of Sensex options contracts, Mint reported, citing sources familiar with the matter.
The Securities and Exchange Board of India had earlier barred Jane Street and three of its related entities from participating in Indian markets. It also directed them to deposit alleged unlawful gains amounting to Rs 4,843.5 crore. SEBI accused the firm of manipulating benchmark indices such as the Nifty 50 and Bank Nifty on expiry days, and imposed a debit freeze on their bank accounts.
Now, BSE Indices Under Scanner
According to the latest report, SEBI’s investigation will now go beyond the NSE indices and encompass those of the BSE, which have seen a sharp surge in derivative trading activity over the past two financial years.
While the News18 group could not independently verify the report, it follows mounting regulatory scrutiny of Jane Street’s India operations.
Rs 36,671 Crore in Profits Under Question
SEBI had earlier said that Jane Street allegedly earned Rs 36,671 crore in profits between January 2023 and March 2025 by manipulating India’s derivatives market. Jane Street, however, has denied all allegations.
In its interim order, SEBI acknowledged the “unprecedented scale and complexity” of the suspected violations. It said completing a thorough investigation may take considerable time, and interim measures were necessary to prevent irreparable harm to market integrity.
“If interim directions are not passed now, and it transpires after detailed investigation that illegal gains had in fact been made which were diverted, the loss to market integrity, investor protection, investor confidence and the futility of the post-investigation remedial measures will result in severe and irreparable damage,” SEBI said in its order.
Income Tax Department May Also Step In
Separately, an Economic Times report suggested that the Income Tax Department may also initiate a probe into Jane Street. Officials are reportedly assessing whether the firm violated Indian tax laws, including the General Anti-Avoidance Rules (GAAR) and norms related to permanent establishment.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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