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Informist, Saturday, Jul. 5, 2025

MUMBAI – Jane Street Saturday disputed the findings of the Securities and Exchange Board of India's interim order to bar its four group entities from the securities market over allegations of market manipulation. "...will further engage with the regulator. Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world," it said in a response to Informist via email. 

SEBI Friday banned four entities of the US-based global trading company and directed to impound INR 48.44 billion from these firms after the regulator found that they made unlawful gains by manipulating the cash and derivatives markets. It said these entities infused huge amount of funds in constituents of Nifty 50 and Nifty Bank to manipulate prices of options contracts. 

"...the JS (Jane Street) Group was consistently running what appeared to be by far the largest risks in 'cash equivalent' terms in F&O particularly on index option expiry days," SEBI said in its order. The regulator alleged them to have involved in intra-day manipulation of Nifty Bank and option contracts for at least 15 expiry days.

Later in the day, a source had told Informist that the regulator will continue its investigation into these entities' trading in index derivatives and underlying stocks in expiry days other than the ones mentioned in its interim order. The source had also said it is difficult to estimate how long it will take for the investigation to complete as its scope is quite large. 

The ban raised concerns about trading volume in the domestic derivatives market, leading to sharp fall in share prices of capital market companies such as Central Depository Services India, Angel One, BSE, and Nuvama Wealth Management, which closed 2-11% lower Friday.  End

Reported by Anjana Therese Antony

Edited by Deepshikha Bhardwaj

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