₹36,500 Crore Stock Market Scam: SEBI Bars Jane Street from Indian Market
The Securities and Exchange Board of India (SEBI) has taken decisive action against US-based trading powerhouse Jane Street, barring the firm from accessing Indian securities markets. This move comes after allegations of a ₹36,500 crore market manipulation scandal involving Bank Nifty derivatives.
Key Highlights
- Alleged Manipulation: SEBI claims Jane Street manipulated index closing prices, made unfair profits from derivatives settlement, disrupted market integrity, and retail investor confidence.
- SEBI’s Action: The regulator has :
- Imposed a complete ban on Jane Street from securities trading
- Frozen assets worth ₹4,843.57 crore, allegedly unlawful gains
- Directed Jane Street to disclose a full asset inventory within 15 days and prohibited asset disposal without SEBI permission.
- Jane Street’s Profit: The firm reportedly earned ₹43,289 crore from index options trading between January 2023 and March 2025, with ₹36,671 crore in net profit from Bank Nifty derivatives.
SEBI’s Investigation
SEBI’s investigation revealed that Jane Street used a two-part trading strategy to manipulate index options pricing. The regulator alleges that the firm :
- Intra-day Index Manipulation: Aggressively bought BANKNIFTY stocks and futures to push the index upward
- Extended Marking The Close: Distorted prices during market hours and expiry close
Timeline
- SEBI’s Order: Passed on July 3, 2025, barring Jane Street from Indian securities markets
- Investigation: Triggered by market participant complaints alleging expiry-day manipulation
Impact
- Market Integrity: SEBI’s action aims to protect market integrity and retail investor confidence
- Jane Street’s Response: The firm disputes SEBI’s findings and intends to engage further with the regulator
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