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Jane Street Group Banned: According to SEBI, Jane Street systematically influenced the prices of Bank Nifty and Nifty 50 index constituents
SEBI Bans Jane Street From Indian Stock Market
Jane Street Group Banned: The Securities and Exchange Board of India (SEBI) has barred four entities of the US-based Jane Street Group from accessing Indian securities markets, alleging large-scale fraud and manipulation in the derivatives segment.
In a 105-page interim order, SEBI exposed a sophisticated trading strategy centered around expiry-day manipulation. According to the regulator, Jane Street systematically influenced the prices of Bank Nifty and Nifty 50 index constituents through aggressive intraday trades, thereby distorting options pricing to secure massive profits.
Also Read: Explained: What Is Jane Street, How It Earned Rs 36,500 Cr From F&O Trades In India, Why Has Sebi Banned It?
18 Sessions Under Scrutiny
SEBI flagged 18 trading sessions — 15 involving Bank Nifty and 3 involving Nifty 50 — where the group allegedly carried out “sharp, large, and aggressive interventions” in both cash and derivatives segments. These trades, SEBI said, disrupted fair price discovery and undermined market integrity.
Bank Nifty Strategy
Jane Street’s method reportedly involved heavy morning purchases of Bank Nifty constituents such as HDFC Bank, ICICI Bank, Axis Bank, SBI, Kotak Mahindra Bank, and others, followed by large-scale sell-offs in the afternoon.
On January 17, 2024 alone, Jane Street traded stocks worth Rs 4,370 crore and booked a net options profit of Rs 673 crore.
Nifty 50 Pattern Also Detected
SEBI found similar expiry-day trading patterns in Nifty 50 stocks during May 2025. Key stocks used to influence index levels included Reliance Industries, Infosys, TCS, HDFC Life, ITC, L\&T, and others.
Jane Street also executed trades across a wider range of Nifty 50 stocks including Adani group companies, Bajaj twins, Sun Pharma, Hindustan Unilever, Tata Motors, NTPC, and Power Grid, among others.
Manipulation Playbook
On expiry days, Jane Street allegedly boosted index levels in the morning via aggressive buying of stocks and futures, then unwound these positions in the afternoon to create a downward drift. These movements were reportedly aligned with their index options positions, allowing them to profit from the volatility they engineered.
Between January 2023 and March 2025, the group booked total profits of Rs 36,502 crore — Rs 43,289 crore from index options, with offsetting losses of Rs 7,687 crore across stock futures, index futures, and cash trades.
SEBI’s Verdict
SEBI concluded that Jane Street’s trades misled retail derivatives traders and violated the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. The four entities have been barred from Indian markets until further notice and ordered to deposit Rs 4,843.5 crore — the amount deemed to have been wrongfully earned — into an escrow account.
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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