MumbaiA few moments ago
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Gen Street is an American trading company that uses high-technology and quantitative trading ie Mathematical models in the stock market.
US trading company Jane Street has received approval to start trading in the Indian stock market again. This information has been revealed by a report by Reuters.
But now the company has assured SEBI that it will not trading in options. The cash will not land in the market even until she completely satisfies SEBI about her trading strategy.
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 has denied SEBI’s allegations. 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.
Jane Street will challenge SEBI order in court
Jane Street has deposited Rs 4,844 crore following SEBI’s order, but is preparing to challenge SEBI’s allegations in court.
The company has hired a large law firm like Khaitan and Company for this. Experts say Gen Street may claim that SEBI issued an interim order without hearing, which could be proactively wrong.
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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