SEBI has banned Global Proprightry Trading firm Jane Street in the US in security markets in India. The firm is accused of allegedly manipulating the index level in the expiry days to earn huge profits in index options. SEBI has instructed it to return a profit of Rs 4,843 crore in an illegal manner. It has been asked to deposit it in an Escro account. Meanwhile, it is reported that Jane Street Group LLC offered an annual package of Rs 4.3 crore to a student of IIT Madras.
This is in December 2024, when Jane Street’s pre-placement offer made headlines during the last IIT Madras Placement season. A package of Rs 4.3 crore annually, was the richest package offered during the season.
How much tough is Jane Street’s interview process
Jane Street’s interview process often consists of several rounds of quantitative problems, coding challenges and probability puzzles. Their purpose is to test the mind. Jane Street is known globally for its attractive package and its famous rigorous recruitment process. According to an Economic Times report, the firm recruits the top -level global universities including Ivard League on the regular basis, and MIT, Harvard, Cambridge, Oxford, Stanford and Princeton. India is rapidly in the recruitment of Jane Street, especially IITs here.
How Jane Street was operational in India
Jane Street Capital is one of the world’s major properitery firms. Proprightry firm is called a firm that trades for itself instead of a client. Gen Street Singapore PTE is registered as Foreign Portfolio Investor (FPI) in India. Jane Street operates through its associate firms- JSI Investments, JSI2 Investments Private Limited in India.
The market will not be manipulated, tolerated, has been increased monitoring; Sebi Chief Tuhin Kant Pandey on Jane Street issue
Security and Exchange Board of India (SEBI) has banned JSI Investments, JSI2 Investments Private Limited, Jen Street Singapore PTE Limited and Jane Street Asia Trading in security markets in the interim order. These entities have also been barred from purchasing, selling or doing other transactions in direct or indirect manner. Banks are also instructed to ensure that no debit should be made without the permission of SEBI in the case of Individy or Joint accounts opened by Jane Street Group companies.
How to manipulate
SEBI says that Jane Street’s entities 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. The market was manipulated with Banknifty and Nifty50 index options. On Jane Street Expiry Day, in the morning, the banknifty stocks and futures were purchased in large quantities and increased the index artificial. Then when the index climbed, she used to earn profits by selling in the afternoon.
This benefited Jane Street, while about 93% of retail options traders were damaged. In order to compensate for Munafas, a loss of Rs 7208 crore was deliberately recorded in another segment like stock futures and cash equity. In this way, net profit was Rs 36,502 crore.
In some expiry days, Jane Street allegedly manipulated prices in the market in the last two hours or around the market shutdown. This is an important time for the settlement of futures and options contracts.
