Jane Street Barred From India’s Securities Market, Here’s What It Means

India’s markets watchdog has barred US-based trading firm Jane Street Group from accessing the country’s securities markets. The Securities and Exchange Board of India (Sebi) has accused the trading house of executing manipulative trades and making unlawful gains of ₹4,843 crore, ($570 million).

Sebi’s interim order, released on July 3, also directed Indian banks to restrict any debits from the group's accounts without prior regulatory approval.

According to Sebi, Jane Street executed a series of trades on the Nifty Bank and Nifty 50 indices between August 2023 and May 2025 that were aimed at distorting closing prices, particularly around expiry dates of derivative contracts. These tactics included intra-day index manipulation and a trading strategy describes as “extended marking the close,” a method where large, aggressive trades during closing hours, influence the final settlement prices.

Sebi’s investigation reveals multiple instances of Jane Street orchestrating the manipulative strategy. In 2023 alone, Jane Street reportedly made gains of ₹191 crore, ₹212 crore, ₹233 crore and ₹241 crore on four separate occasions in August and September through intra-day manipulation. Similar patterns continued through late 2023 and into 2024, with gains inching higher. For example, on 6 March 2024, SEBI estimated that Jane Street made gains of ₹734 crore from trades using the same strategy.

In May 2024, the firm was alleged to have used the extended marking the close tactic again, resulting in ₹171 crore in unlawful gains. By July 2024, similar activity reportedly brought in another ₹225 crore. A parallel set of trades in the Nifty 50 index yielded an additional ₹370 crore.

The most recent incident cited by SEBI happened in May 2025, despite a formal caution issued in February 2025 and Jane Street’s written assurances to the National Stock Exchange (NSE). According to the order, these repeated violations demonstrate a "willful disregard" of regulatory guidance.

Across the two-year period under review, four Jane Street entities are said to have collectively booked profits exceeding ₹36,500 crore in India’s index derivatives market. SEBI has isolated ₹4,843 crore of these as unlawful gains and ordered that the amount be deposited in an escrow account with a scheduled commercial bank.

The regulator’s order explicitly bars Jane Street and its related entities from buying, selling, or dealing in any securities in the Indian market, either directly or indirectly. It also requires banks to freeze the relevant accounts until further notice.

Jane Street has publicly contested SEBI’s findings, stating that it intends to engage with the regulator to clarify its position. The firm maintains that its trading activities are within legal and regulatory norms.