India’s market regulator, SEBI, is broadening its investigation into global proprietary trading firm Jane Street, looking for signs of manipulative trading in more indices beyond the initial focus on BANKNIFTY.
Broadening the Scope of Investigation
Sources indicate that SEBI’s probe into Jane Street will now extend to other expiry days and various indices across different exchanges. This comes after an initial examination that uncovered alleged manipulative practices.
The regulator believes the full scope of this investigation is quite large and will require significant time to complete. The ongoing inquiry aims to uncover all potential patterns of manipulative trading by the US-based firm.
SEBI’s Initial Action Against Jane Street
SEBI recently issued an interim order against Jane Street, impounding over Rs 4,843.57 crore in alleged unlawful gains. The firm has also been restrained from accessing the Indian securities market.
This initial order specifically highlighted 18 instances of prima facie manipulation in the BANKNIFTY index on expiry days between January 2023 and March 2025. It also cited three days of alleged NIFTY index manipulation in May 2025.
It’s important to note that this interim order is not a show-cause notice, signaling that the investigations into Jane Street are far from over and will continue rigorously.
Assessing Market Impact and New Safeguards
Despite the high-profile nature of the case, sources within SEBI suggest that their enforcement action against Jane Street is unlikely to significantly disrupt the broader Indian market. The regulator has already put measures in place to enhance market stability.
In May of this year, SEBI introduced delta-based limits for index options. These limits are designed to curb excessive risk-taking by participants without negatively impacting regular traders. This move aims to strengthen risk monitoring in the equity derivatives segment.
SEBI’s Commitment to Fair Markets
SEBI remains committed to closely monitoring India’s futures and options (F&O) markets. Its primary goals are to ensure investor protection, maintain market stability, and support sustained capital formation.
The regulator believes that fostering market confidence and upholding a free and fair environment will ultimately encourage responsible investing and economic growth in the long run.
- SEBI is expanding its probe into Jane Street beyond BANKNIFTY to other indices and expiry days.
- An interim order already impounded over Rs 4,843 crore in alleged unlawful gains from the firm.
- New delta-based limits for index options are in place to prevent excessive risk-taking.
This ongoing investigation underscores SEBI’s dedication to maintaining the integrity and fairness of the Indian financial markets.
India’s market regulator, SEBI, is broadening its investigation into global proprietary trading firm Jane Street, looking for signs of manipulative trading in more indices beyond the initial focus on BANKNIFTY.
Broadening the Scope of Investigation
Sources indicate that SEBI’s probe into Jane Street will now extend to other expiry days and various indices across different exchanges. This comes after an initial examination that uncovered alleged manipulative practices.
The regulator believes the full scope of this investigation is quite large and will require significant time to complete. The ongoing inquiry aims to uncover all potential patterns of manipulative trading by the US-based firm.
SEBI’s Initial Action Against Jane Street
SEBI recently issued an interim order against Jane Street, impounding over Rs 4,843.57 crore in alleged unlawful gains. The firm has also been restrained from accessing the Indian securities market.
This initial order specifically highlighted 18 instances of prima facie manipulation in the BANKNIFTY index on expiry days between January 2023 and March 2025. It also cited three days of alleged NIFTY index manipulation in May 2025.
It’s important to note that this interim order is not a show-cause notice, signaling that the investigations into Jane Street are far from over and will continue rigorously.
Assessing Market Impact and New Safeguards
Despite the high-profile nature of the case, sources within SEBI suggest that their enforcement action against Jane Street is unlikely to significantly disrupt the broader Indian market. The regulator has already put measures in place to enhance market stability.
In May of this year, SEBI introduced delta-based limits for index options. These limits are designed to curb excessive risk-taking by participants without negatively impacting regular traders. This move aims to strengthen risk monitoring in the equity derivatives segment.
SEBI’s Commitment to Fair Markets
SEBI remains committed to closely monitoring India’s futures and options (F&O) markets. Its primary goals are to ensure investor protection, maintain market stability, and support sustained capital formation.
The regulator believes that fostering market confidence and upholding a free and fair environment will ultimately encourage responsible investing and economic growth in the long run.
- SEBI is expanding its probe into Jane Street beyond BANKNIFTY to other indices and expiry days.
- An interim order already impounded over Rs 4,843 crore in alleged unlawful gains from the firm.
- New delta-based limits for index options are in place to prevent excessive risk-taking.
This ongoing investigation underscores SEBI’s dedication to maintaining the integrity and fairness of the Indian financial markets.
