SEBI Bars Jane Street Group from Indian Securities Market Over ₹4,843 Crore Gains

New Delhi  – In a significant crackdown, the Securities and Exchange Board of India (SEBI) has issued an interim order barring Jane Street Group and its associated entities from accessing the Indian securities market for alleged fraudulent trading activities.

 SEBI Restricts Jane Street from Market Operations

In its interim order dated July 3, SEBI has prohibited Jane Street Group and related entities from buying, selling, or dealing in securities, either directly or indirectly, in the Indian market. The action comes after a detailed investigation into the firm's trading patterns, which the regulator believes violate the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations.

 ₹4,843 Crore in Unlawful Gains to be Deposited in Escrow

The market regulator has directed the impounding of unlawful gains amounting to ₹4,843 crore, allegedly earned through manipulative trading. SEBI ordered Jane Street to open an escrow account with a scheduled commercial bank in India and deposit the impounded amount.

Additionally, banks where Jane Street entities hold accounts have been instructed to ensure no debit transactions occur without SEBI’s prior approval.

 Open Positions Must Be Closed Within 3 Months

According to the SEBI order, Jane Street and its entities must close or square-off all open positions within three months or by the expiry of the respective contracts—whichever is earlier.

Who is Jane Street Group?

Jane Street Group LLC is a global proprietary trading firm, operating in over 45 countries with more than 2,600 employees. Known for its algorithmic trading strategies, the firm has a presence in the U.S., Europe, and Asia and plays a significant role in global markets.

Timeline of SEBI Investigation into Jane Street

Here’s a breakdown of key developments leading up to the ban:

• April 2024: SEBI initiates review after media reports emerge regarding Jane Street’s alleged use of proprietary trading strategies in India.

• July 23, 2024: SEBI instructs NSE to examine Jane Street's trading activities.

• August 2024: SEBI engages with Jane Street on August 20; responses submitted on August 30.

• November 13, 2024: NSE submits its detailed report on Jane Street’s trades.

• December 2024: SEBI notes abnormal volatility during weekly index options expiry and identifies large, risky positions held by certain entities.

• February 4, 2025: Initial observations suggest Jane Street violated PFUTP regulations.

• February 6, 2025: NSE issues a caution letter to Jane Street Singapore and affiliates.

• February 2025: Jane Street responds to caution letters on February 6 and 21.

• May 15, 2025: Jane Street is found to be continuing large index option trades, despite warnings.

What Happens Next?

This interim order marks one of SEBI’s most high-profile actions against a foreign trading firm. Jane Street now faces strict restrictions pending further investigation. SEBI is expected to pass a final order after reviewing additional submissions and market impact.