New Delhi24 minutes ago
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SEBI had banned Jane Street from the stock market accusing the market of manipulating the market and earning illegal profits of Rs 4,844 crore.
American trading company Jane Street and India’s Market Regulator Security and Exchange Board of India (SEBI) will be face to face in the court today (9 September).
Two months ago, SEBI banned Jane Street from the stock market accusing Jane Street of manipulating the market and earning an illegal profit of Rs 4,844 crore.
SEBI alleges that Jane Street damaged small investors by rigging the index options. Against this, Jane Street Group filed a case against SEBI in the Securities Appellate Tribunal (SAT) last week.
Although, The company says that SEBI did not give them the necessary documents, on the basis of which they could present their side. Also, Jane Street claims that SEBI’s own surveillance team did not get any manipulation in the first investigation. This dispute is also important for the world’s largest derivative market.
Understand the whole matter in 4 points ..
- SEBI had banned the trading of Jane Street on 3 July 2025. SEBI said that Jane Street rigged Nifty 50 and Bank Nifty, which made her huge profit.
- Gen Street earned a profit of Rs 36,671 crore by Gen Street from January 2023 to May 2025, of which Rs 4,844 crore was considered as illegal profits.
- SEBI had directed that he would have to deposit Rs 4,844 crore in the escrow account to resume the trading. Jane Street deposited this amount on 11 July.
- On July 18, SEBI allowed him to trading. However, it also made it clear that Jane Street would have to avoid trading patterns that the market regulator considered manipulative.
Jane Street denied allegations of rigging
- Jane Street had denied SEBI’s allegations wrong. The company says that the trading it did was a general index arbitration strategy, taking advantage of the price difference in the market.
- The company said in an internal memo sent to its employees that SEBI has misunderstood their trading. Jane Street also said that she is trying to resolve the matter with SEBI.
- However, the company has made it clear that it will not do options trading in India at the moment. Gen Street’s stake in derivatives in India was 5 to 7 times more than normal shares.
Difference between arbitrase strategy and market manipulation
Arbitrase is a valid trading strategy. In this, the trader takes advantage of the difference in the prices of a share, commodity or derivatives in different markets or platforms at the same time.
Suppose, a company shares are being sold for Rs 100 on Bombay Stock Exchange (BSE), but for Rs 102 on the National Stock Exchange (NSE). The trader purchases shares from BSE and sells it immediately on NSE and earns a profit of Rs 2. This is completely legal.
Market manipulation is illegal activity. In this, the trader deliberately affects the prices of shares, so that it is profitable or loss to others.
Suppose, a trader buys shares of a company in large quantities and spreads the rumor that the company has got a big contract. This increases the share price and sells it at a high price. This causes harm to other people and benefits it.
SEBI will also check Sensex options contracts
SEBI has allowed Jane Street to trading, but NSE and BSE have been asked to closely monitor Jane Street’s future trades.
SEBI has also said that if Jane Street again adopted a manpulative trading pattern, strict action will be taken on it.
SEBI investigation is still going on and may take several months. SEBI has also decided to look at the Sensex options contracts, increasing the scope of its investigation. SEBI suspects that Jane Street may have manipulated the BSE index.
Read this in detail how Jane was rigging the market in detail.
SEBI has banned the American trading firm Jane Street Group and 3 companies related to it. The American trading firm has been accused of rigging prices on the day of index expiry. SEBI has also ordered to seize illegal earnings of Rs 4,843.57 crore.
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