'Committed To Compliance,' Says Jane Street After SEBI Ban In Derivatives Manipulation Case

US-based trading powerhouse Jane Street has pushed back against explosive charges from Indian market regulator SEBI, which banned the firm from local markets and seized Rs 4,840 crore over alleged manipulation of equity indices through derivative trading strategies.

In an emailed statement, Jane Street said it "disputes the findings" of the SEBI order and confirmed it would continue to engage with the regulator.

“Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world,” the firm said as mentioned in the report by Reuters. 

SEBI’s Biggest Crackdown Yet on a Foreign Firm
In its interim order dated July 3, the Securities and Exchange Board of India (SEBI) accused Jane Street and its affiliated India-incorporated entities—collectively referred to as the JS Group—of manipulating the Bank Nifty index, one of India’s most actively traded indices comprising 12 top financial firms.

Calling it “unlawful gains,” SEBI ordered the impounding of $567 million and directed that the amount be parked in an escrow account. It further instructed Jane Street’s bankers to restrict fund movements without regulatory consent.

The JS Group entities are now restrained from accessing the Indian securities market and prohibited from buying, selling, or dealing in securities, directly or indirectly, until a final decision is made after the probe concludes.

India’s Derivatives Boom & Foreign Interest
The action comes at a critical juncture when several global trading giants—including Citadel Securities, Millennium, IMC Trading, and Optiver—are expanding their presence in India’s booming derivatives market. According to the Futures Industry Association, India accounted for nearly 60% of global equity derivatives volumes in April, from a total of 7.3 billion contracts.

Read More - SEBI Banned Jane Street After Rs 36,500 Cr Windfall in India - Here’s What You Need to Know

Jane Street had entered the Indian market in December 2020 and, per SEBI’s calculations, made  Rs 36,500 crore in profits between January 2023 and March 2025 on its Indian trades.1

The Alleged Strategy: Propping Up & Shorting
SEBI’s 105-page interim order alleges a calculated strategy: Jane Street entities bought large quantities of Bank Nifty stocks in both cash and futures markets during morning trade to artificially support the index. Simultaneously, they built large short positions in index options, profiting when the market adjusted.

“The investigation tracked Jane Street's trading patterns over more than two years and found two key strategies that were designed to manipulate stock indexes,” SEBI said.

What’s Next for Jane Street
The company now has 21 days to file objections or responses to SEBI’s order and can also challenge it before the Securities Appellate Tribunal. The interim ban will stay in place until SEBI concludes its full investigation and passes a final order.

(With Inputs From Reuters)