Sebi probes HFT firms after Jane Street settlement
India's market regulator Sebi is investigating high-frequency trading (HFT) firms following its recent case with US-based Jane Street.
The investigation targets alleged market manipulation and focuses on how these firms trade in the Indian stock market.
Earlier this year, the National Stock Exchange (NSE) wrapped up its own probe and shared findings with Sebi.
Investigation focuses on strategies used by these firms
At least 10 HFT players—including Millennium Management and Jump Trading—are being investigated for their strategies in Futures and Options, especially Nifty Options, which have seen big swings around contract expiries.
In February 2025, NSE sent warning letters to some of these firms over some of the trading strategies they were using.
While Jane Street paid up ₹4,840 crore after being accused of index manipulation and got its ban lifted in July 2025, Sebi's wider investigation could take years to fully play out—so this story isn't over yet.