Mumbai, July 4
The Securities and Exchange Board of India (SEBI) has barred US trading entity Jane Street and three of its related entities from accessing the market, directing them to deposit illegal gains of Rs 4,843.5 crore in an account in favour of the markets regulator.
In its order, the regulator has also directed a debit freeze on the bank accounts of these entities, which include JSI2 Investments Private Ltd, Jane Street Singapore Pte. Ltd and Jane Street Asia Trading Ltd.
According to the SEBI order, Jane Street earned Rs 43,289.33 crore in profits through trading in index options on Indian exchanges between January 1, 2023, and March 31, 2025.
As per the order, Jane Street on 14 expiry days used to heavily buy Bank Nifty futures in huge amounts as well in the cash segment and sell Bank Nifty options in big numbers -- all in the morning.
After noon, the Jane Street entities used to aggressively sell large amounts in Bank Nifty futures and influence the closing of the index on expiry days.
According to the SEBI order, in the morning of January 17, 2024, Jane Street aggressively bought Bank Nifty futures worth Rs 4,370 crore and sold Bank Nifty options for Rs 32,115 crore. After noon, it aggressively sold large amounts in Bank Nifty in the underlying futures for Rs 5,372 crore.