Mumbai — U.S.-based trading firm Jane Street has been prohibited by India’s market regulator, SEBI, from operating in Indian markets, following accusations of manipulating the Nifty 50 index and securing unfair profits totaling ₹48.4 billion ($566.3 million).
According to SEBI’s interim directive, the firm’s Indian bank accounts have been frozen, and financial institutions have been instructed not to process any debit transactions without prior approval. The allegations state that Jane Street employed a trading method involving heavy morning purchases and subsequent sell-offs to sway the index, ultimately benefiting from large options deals.
SEBI asserted that the actions lacked any sound economic rationale and compromised the integrity of the market, especially as the firm persisted with this behavior despite receiving a warning from the National Stock Exchange in February.
In response, Jane Street stated its disagreement with SEBI’s conclusions and affirmed its full cooperation with the ongoing inquiry.
