SEBI Bars Jane Street for Index Manipulation

The Securities and Exchange Board of India (SEBI) has barred US-based Jane Street Group from accessing Indian securities markets after a detailed investigation into alleged manipulation of the Nifty 50 and Bank Nifty indices. SEBI accused Jane Street of using sophisticated trading strategies, including intra-day index manipulation and 'marking the close' on expiry days, to artificially influence index prices and secure unlawful gains. The regulator ordered the impounding of over 48.4 billion rupees (approximately $566 million) and directed banks to freeze Jane Street's accounts pending further investigation. Jane Street reportedly earned more than $2.3 billion in net revenue from equity derivatives in India last year. The action has unsettled traders and heightened concerns about the impact of algorithmic and proprietary trading on retail investors and market fairness. SEBI's enforcement is part of a broader effort to ensure market integrity and curb unfair trade practices.