SEBI bans Jane Street over market manipulation, freezes $566M
What's the story
The Securities and Exchange Board of India (SEBI) has barred US-based trading firm Jane Street Group from accessing the Indian securities market. The ban comes amid an ongoing investigation into alleged market manipulation by the company through its derivatives trading. The SEBI order prohibits Jane Street from buying, selling, or dealing in any securities directly or indirectly until further notice.
Account freeze
SEBI orders banks to freeze withdrawals from Jane Street accounts
In addition to barring Jane Street from the Indian securities market, SEBI has also ordered all banks to freeze withdrawals from accounts linked to the company. This includes both individual and jointly held accounts unless specific approval for transactions is given by SEBI. SEBI has also ordered the impounding of ₹4,843 crore (over $566 million) in alleged illegal gains made by Jane Street through manipulative practices.
Information
Jane Street directed to close existing positions
Along with the fund seizure, SEBI has also directed Jane Street and its related entities to close or square off all existing positions within three months or by the contract's expiry—whichever comes first.
Investigation timeline
Timeline of events leading to SEBI's action against Jane Street
The SEBI order details a timeline of events leading to its action against Jane Street. This includes an April 2024 report on the company's alleged unauthorized use of proprietary trading strategies in Indian markets, and a July 2024 instruction to the National Stock Exchange (NSE) to examine Jane Street's trading activity for potential market abuse. Despite being warned by SEBI in February 2025, Jane Street continued operating with large cash-equivalent positions in index options, prompting further regulatory scrutiny.