What was Jane Street doing in India and why did SEBI bar it?

Jane Street began its India operations in December 2020, focusing on trading in the derivatives segment using its own funds. The firm built large positions in index futures and options, especially around Bank Nifty, to influence price movements. These trades were allegedly not neutral but aimed at swaying the market to amplify returns.

SEBI’s investigation, which covered trading patterns from early 2023 to mid‑2025, found two key strategies. One involved taking outsized options positions and then executing offsetting trades in the cash market. The other used expiry‑day trades to trigger sharp index moves. SEBI said this hurt small investors trading on the other side.

In early July 2025, SEBI issued an interim order barring Jane Street and related entities from dealing in Indian securities. The regulator froze ₹4,843 crore (~$567 million) as “unlawful gains.” This marks SEBI’s toughest action yet against an overseas trading firm. Jane Street disputes the allegations and plans to respond within 21 days or seek redress through appeal.