Sebi Slaps Ban on Jane Street for Alleged Expiry-Day Index Rigging
Sebi Slaps Ban on Jane Street
In a bold move, the Securities and Exchange Board of India (Sebi) has barred US-based trading giant Jane Street from participating in the securities markets, accusing the firm of manipulating index levels on expiry days to rake in massive profits from index options. The regulator has also ordered Jane Street to surrender unlawful gains amounting to a staggering Rs 4,843.57 crore.
Sebi's interim order, issued on Thursday, targets multiple Jane Street entities, including JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading, all part of the Jane Street Group (JS Group). The group is alleged to have amassed profits exceeding Rs 43,289 crore from index options trading on the National Stock Exchange (NSE) between January 1, 2023, and March 31, 2025.
The regulator uncovered suspicious trading patterns earlier this year, prompting the NSE, as the first line of oversight, to issue a stern warning to JS Group in February 2025. The exchange explicitly cautioned the firm against taking excessive risks in index options and engaging in potentially manipulative trading practices. Jane Street, in response, assured NSE of its commitment to comply with all regulations.
However, Sebi alleges that JS Group flouted these warnings and resumed manipulative tactics in May 2025. The firm is accused of employing "extended marking the close" strategies, involving aggressive trading in index and constituent markets near expiry day closings to artificially influence index levels for illicit gains.
Sebi’s whole-time member, Ananth Narayan G, condemned JS Group’s actions, stating, “Such blatant disregard for NSE’s advisory and their own assurances demonstrates that JS Group cannot be trusted as a good-faith market participant. Allowing this to continue risks severe harm to investor protection.”
In addition to the market ban, Sebi has ordered JS Group to immediately halt all fraudulent, manipulative, or unfair trading practices and to refrain from any activities that violate market regulations. The directive to disgorge Rs 4,843.57 crore in unlawful profits underscores the regulator’s commitment to safeguarding India’s financial markets.
This decisive action sends a strong message to market participants about the consequences of undermining fair trading practices, as Sebi vows to maintain vigilance to protect investors.
