RIGGING RETURNS

Sebi has barred Jane Street from the Indian market on charges of market manipulation. The company has deposited ₹4,843 crore in an escrow account and a legal battle is likely to ensue

- BY RAHUL OBEROI & RIDDHIMA BHATNAGAR

THE SECURITIES AND Exchange Board of India (Sebi) on July 3 banned the US-based proprietary trading firm Jane Street from the Indian securities market on charges of manipulation. Between January 2023 and March 2025, Jane Street Group made a total profit of more than ₹35,000 crore across all trading activities in Indian markets. Unlawful gains for the period was around ₹4,843 crore and the same has been deposited by the company in an escrow account. Overall, a significant chunk—₹43,289 crore for the same period—was derived from trading index options, although this was partly reduced by ₹7,687 crore in losses from activities in cash and futures segments.

Investors have been on the receiving end of such market manipulations. A recent analysis by Sebi revealed that nine out of 10 investors lost money in the equity derivatives segment in FY25. One possible beneficiary of this could be the American trading giant. The controversy has brought weekly expiry trades and quant strategies under the regulator’s lens, with expectations of a short-term impact on derivatives volumes.