Capital Market Regulator SEBI has banned Global Proprightry Trading firm Jane Street in the US in India’s security markets. This propa trading firm is accused of allegedly manipulating the index level in expiry days to earn huge profits in index options. SEBI has directed it to refund illegal profits of Rs 4,843 crore. This can be the most recovered amount of SEBI so far.
The Security and Exchange Board of India (SEBI) has banned JSI Investments, JSI 2 Investments Private Limited, Jane Street Singapore Private Limited and Jane Street Group (JS Group) Jen Street Asia Trading (online business) in security markets.
This action of SEBI has created a stir in India’s derivative market. Traders and market participants are still guessing its results. Nitin Kamat, co-founder of online trading platform Jirodha, has praised SEBI alertness and dedication in this case. But at the same time warned that it can also prove to be bad news for ban, exchanges and brokers.
About 50% in the option trading volume of Prop Trading Firms
Kamat wrote in his post, ‘To follow Jane Street, you will have to give SEBI to SEBI. If the allegations are true, then it is clearly manipulated in the market. Further written that the most shocking thing is that Jane Street continued to do so even after receiving warnings from stock exchanges. Perhaps this happens when you become accustomed to a liberal American regulatory system. American market structure has dark pools, payment for order flow, and many other flaws. These allow hedge funds to make billions from retail investors. But due to the regulators of India, none of these practice will be allowed in our country.
Kamat also said that Prop Trading Firms like Jane Street holds about 50% in the option trading volume. If they pull their hands and which can be, then the retail activity in option trading may be shocked by 35%. If this happens, it can be bad news for both exchanges and brokers. Now in the next few days, F&O (Future and Options) Volume will tell how much we are dependent on these renowned Prop Trading Firms.
Jane Street Group started in the year 2000
The Gen Street Group was started in 2000. It has more than 2,600 employees in 5 offices in the US, Europe and Asia and operates trading in 45 countries. SEBI says that the entities of Jane Street made a profit of over Rs 44,358 crore from NSE index options from January 2023 to March 2025 in all NSE product categories and segment.
SEBI directed these entities to avoid involvement in any fraud, manipulation or inappropriate business behavior in a direct or indirect manner. But the group still did not agree. NSE also warned in February 2025 but it also had no effect.
