SEBI Bars Global Trading Giant Jane Street from Indian Market
India's market regulator, the Securities and Exchange Board of India (SEBI), has reportedly barred global quantitative trading firm Jane Street from accessing the country's securities market. While the specific reasons for the ban were not immediately available, the action against such a prominent high-frequency trading firm is significant. The move could have major implications for foreign institutional investors and the algorithmic trading landscape in India, pending further clarification on the nature of the alleged violations and the ban's duration.
Unpacked:
SEBI alleged that Jane Street engaged in manipulation of index derivatives, specifically Bank Nifty and Nifty 50 options, by using high-volume, cross-segment trading strategies. These actions were said to distort index levels during weekly expiry days, misleading retail traders and resulting in significant profits for Jane Street.
Jane Street reportedly earned over Rs 36,500 crore from its trades in Indian index derivatives, particularly Bank Nifty options, between January 2023 and March 2025.
In addition to barring Jane Street and its affiliates from accessing India's securities market, SEBI directed the freezing of withdrawals from accounts linked to the firm and impounded Rs 4,840 crore in alleged illegal gains.
SEBI’s action may lead to increased scrutiny of foreign institutional investors and greater regulation of algorithmic and high-frequency trading in India. It could also prompt other global trading firms to reassess their practices and compliance measures within the Indian market.