Capital Market Regulator SEBI has banned Global Proprightry Trading firm Jane Street in the US in India’s security markets. 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. This can be the most recovered amount of SEBI so far.
Security and Exchange Board of India (SEBI) has banned JSI Investments of Jane Street Group in the interim order, JSI2 Investments Private Limited, Jen Street Singapore PTE Limited and Jen Street Asia Trading were banned in security markets. These entities have also been barred from purchasing, selling or doing other transactions in direct or indirect manner. According to SEBI’s order, banks are also instructed to ensure that no debit is made without the permission of SEBI in the case of accounts opened by Gen Street Group companies in Individy or Joint.
This action of SEBI has created a stir in the derivative market of India. Traders and market participants are still guessing its results. Nitin Kamat, co-founder of online broking platform Jirodha, has praised SEBI’s 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 violates FPI rules to earn profit in Indian markets!
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 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.
Jane Street Capital is one of the world’s large proprietary firms. The proprietary 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 launched its operations in India in December 2020. It earned more than $ 2.3 billion from equity derivatives in India in 2024. As of December 2024, the firm’s revenue from India’s operations was Rs 20,000 crore.