Between January 2023 and March 2025, global trading powerhouse Jane Street Group allegedly orchestrated a sophisticated, high-frequency strategy that India’s market regulator SEBI has now labelled manipulative and unlawful. According to SEBI, Jane Street made an estimated ₹4,843 crore in unlawful profits as part of ₹43,289 crore earned in India during this period.

Here’s what SEBI uncovered and why it acted decisively.

Multiple entities, one coordinated strategy

Jane Street operated in India through three Foreign Portfolio Investors (FPIs):

• Jane Street Asia Trading Limited (JSATL)

• Jane Street India Trading Private Limited (JSITPL)

• Jane Street Asia LLC (JSALLC)

Though registered as separate entities, SEBI’s probe revealed that these firms acted as a single group under common control. Their trades were synchronized with near-perfect timingraising red flags about collusion.

Mirror trades without real risk

The investigation found these entities routinely took opposite positions in index derivativesparticularly in Nifty and Bank Nifty futures and options.
For example, one Jane Street entity would buy a contract while another simultaneously sold it — at the same price and same time. Many of these trades were reversed within seconds, with no meaningful market exposure.

These were not legitimate hedging or liquidity moves but paired trades designed to subtly move prices or stabilize levels that favored Jane Street’s book.

Expiry-day price manipulation

SEBI also flagged expiry-day tacticswhere Jane Street allegedly placed large, coordinated orders in the final minutes of trading on monthly and weekly expiry days.
Since settlement is based on closing prices, even slight, well-timed movements could significantly benefit their existing positions. SEBI concluded that these actions were intended to manipulate expiry levels in Jane Street’s favor.

Circular trading and artificial volumes

The firm also engaged in circular tradinggenerating false market activity by executing back-to-back trades between its own accounts. These trades created an illusion of demand and liquidity — misleading other participants and distorting true market conditions.

The regulatory response

SEBI ruled that these practices distorted prices and manipulated settlement outcomesresulting in unlawful gains of ₹4,843 crorewhich the firm must deposit into an escrow account.

In addition:

• Jane Street and its entities have been barred from accessing the securities market until further notice.

• Bank accounts linked to these entities are frozenwith withdrawals restricted without SEBI’s permission.

• The firm must close all open positions within three months or by their contractual expiry — whichever is earlier.

The legal provisions invoked

SEBI cited violations of:

• Section 12A(a), (b), and (c) of the SEBI Act.

• Regulations 3 and 4 of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

This decisive action sends a clear message: even the most sophisticated global players cannot manipulate Indian markets with impunity.