On July 3, 2025, the Securities and Exchange Board of India (SEBI) took strong action against Jane Street, a large international trading firm. SEBI said that Jane Street used unfair methods to earn a lot of money in the Indian stock market. As a result, SEBI has banned the firm from trading in India and has ordered it to return ₹4,844 crore, which SEBI believes were profits made by breaking the rules.
This decision is a major step by SEBI and shows its commitment to keeping the Indian market fair and transparent for all investors.
According to SEBI, Jane Street changed the prices of some stocks on purpose. The firm bought large amounts of shares in companies that are part of the Bank Nifty index, especially at the end of the trading day. This caused the index to rise artificially. Because of this, Jane Street earned large profits from options based on the Nifty and Bank Nifty indexes. SEBI says the company took advantage of how options are priced during the closing minutes of trade.
Between January 2023 and March 2025, Jane Street reportedly made ₹44,358 crore in profits from options trading. However, it also lost ₹7,208 crore in stock futures, ₹191 crore in index futures, and ₹288 crore in the regular cash market. After all the gains and losses were added up, the company made a net profit of ₹36,671 crore.
SEBI says that these profits were not made through regular trading, but by placing last-minute buy orders that pushed stock prices higher. These actions gave Jane Street an unfair advantage and allowed them to profit in a way that goes against fair market rules.
SEBI also found that Jane Street used Indian-registered companies to hide its real identity. This helped the firm avoid trading rules meant for foreign investors. For instance, foreign investors are not allowed to buy and sell the same stock on the same day in the regular cash market. But Jane Street did this through Indian entities, which SEBI says breaks Indian trading rules.
SEBI started looking into Jane Street after a news report raised concerns in June 2024. In February 2025, the National Stock Exchange (NSE) even sent a warning letter to Jane Street. But according to SEBI, the company continued using the same methods.
Now, SEBI has frozen all bank accounts linked to Jane Street and told banks not to allow any money to be taken out without SEBI’s approval.
Experts believe that this case is specific to Jane Street and will not cause major concern among other foreign investors. India’s stock market remains strong and stable. SEBI has also introduced new rules from July 1, 2025, to make options trading safer and stop such practices from happening again. India currently has the world’s largest options trading market, and SEBI wants to make sure it stays fair and trustworthy.
Jane Street has said that it did not do anything wrong and will fully cooperate with SEBI during the investigation. But until the full inquiry is complete, the ban will stay, and the company will have to return the ₹4,844 crore.
SEBI will continue to closely monitor Jane Street’s trading, especially on days when options expire, to stop any more unfair activity. The investigation is still ongoing.
This case is important because it shows that SEBI is willing to act quickly and strongly against those who try to misuse the system. It also highlights that the Indian market is focused on fairness, honesty, and protecting small investors. What happens next could set an important example for how India handles market manipulation in the future.