Sebi probing Jane Street's derivative trades over three years

Sebi is investigating Jane Street, Jane Street Singapore Pte and JSI Investments, the firm's India unit

- Reuters

India's markets regulator is investigating Jane Street's derivatives trades stretching back three years to check if one of the world's largest quant trading firms intended to manipulate the country's benchmark stock indexes, according to two people with direct knowledge of the matter.

The investigation—the largest such into a global trading firm—follows a series of steps taken by the Securities and Exchange Board of India (Sebi) to cool the frenzy in India's derivatives markets.

Sebi is investigating Jane Street, Jane Street Singapore Pte and JSI Investments, the firm's India unit, and studying the firms' algorithmic trading strategies in the National Stock Exchange's index of top 50 stocks and its index of banking stocks, one of the persons said.