SEBI Reveals Market Manipulation Scheme by Jane Street Worth ₹36,000 Cr

e short positions in both Bank Nifty futures and options. They reportedly earned a profit of Rs 225 crore by influencing a softer index close.

SEBI’s investigation revealed that the Jane Street group had amassed over Rs 43,000 crore solely from index options between January 2023 and March 2025. However, their losses in stock futures, index futures, and cash segments amounted to about Rs 7,687 crore.

The trading schemes used by Jane Street, as highlighted by SEBI, were not just focused on generating profits but also aimed at manipulating market movements. This behavior directly contradicts fair market practices and regulations put in place to ensure a level playing field for all market participants.

The specific trading pattern adopted by Jane Street involved actions like buying large quantities of Bank Nifty futures and stocks in the morning, combined with aggressive selling of Bank Nifty options. Subsequently, they would sell futures later in the day, thereby influencing the closing level of the index. An example of this occurred on January 17, 2024, when Jane Street purchased Bank Nifty futures totaling Rs 4,370 crore, sold options amounting to Rs 32,115 crore, and then sold futures worth Rs 5,372 crore, resulting in a substantial short position of Rs 46,620 crore in the options market. Despite incurring a loss of Rs 61.6 crore in futures and cash segments, the firm managed to end the day with a net gain of Rs 673.4 crore.

Another instance of Jane Street’s market manipulation occurred on July 10, 2024, where they engaged in activities that created significant short positions in both Bank Nifty futures and options, ultimately leading to a profit of Rs 225 crore by influencing a less volatile index close.

SEBI’s decision to bar Jane Street and its related entities from accessing Indian securities markets was a direct response to their discovery of substantial market manipulation within the derivatives trading space. The illicit gains made by Jane Street totaling Rs 4,843 crore have been mandated to be deposited into an escrow account with a scheduled commercial bank to ensure compliance with regulatory measures.

In summary, SEBI’s investigation into Jane Street’s trading practices uncovered a complex web of market manipulation tactics that not only allowed the firm to profit immensely but also had a significant impact on market movements. By taking strict measures against such practices, SEBI has reaffirmed its commitment to maintaining the integrity and fairness of Indian securities markets.