On July 3, 2025, the Securities and Exchange Board of India (SEBI) banned U.S.-based trading firm Jane Street from the Indian securities market. The ban, effective immediately, is a result of alleged market manipulation activities. This action has significant implications for market integrity and investor protection in India.
SEBI ordered Jane Street to disgorge ₹4,844 crore (approximately $570 million) in unlawful gains. The investigation revealed that Jane Street used aggressive trading strategies, particularly in the options segment, to manipulate stock prices. The ban will remain until the firm complies with the disgorgement order.
Between January 2023 and March 2025, Jane Street reported a net gain of ₹36,671 crore (approximately $4.5 billion) from its trading activities in India. SEBI is closely monitoring Jane Street's future dealings. The firm is required to deposit the unlawful gains in an escrow account.
This decision reflects SEBI's commitment to market integrity. The regulator has previously taken steps to curb excessive derivatives trading by retail investors. As of July 4, 2025, Jane Street has not commented on the order. (Source: Reuters, Financial Times)