Sebi bans Jane Street, seizes ₹4,843 cr for manipulation

The market regulator on Friday barred four entities of US-headquartered Jane Street Group from accessing the securities market until they deposit alleged illegal gains into an escrow account, rattling shares of capital market-related companies and the broader financial services sector.

- Neha Joshi & Ram Sahgal

In one of the biggest crackdowns in India's equity market, the Securities and Exchange Board (Sebi) ordered seizing ₹4,843 crore from the group, one of the most influential players in the global derivatives markets, citing prima facie evidence of index manipulation and fraudulent trading practices.

The Sebi interim order also froze the bank and demat accounts of the four entities, and directed all custodians, banks, depositories, and registrar agents to block any transfers or redemptions involving the entities' assets without its approval.

Capital market-related stocks plunged on fears of a fall in volumes. Shares of BSE tanked 6.55% to ₹2,635.2 while Nuvama, a trading partner of Jane Street in India, dropped 11.2% to ₹7,310. Angel One, the third-largest retail broking house, plunged 5.9% to ₹2,776. Depository CDSL, a subsidiary of BSE, shed 2.3% to ₹1,762.5. Others like Motilal Oswal Financial Services and Aditya Birla Sun Life MF slipped by 1.3-1.6%.