January 22, 2026
In a landmark 105-page ex parte interim order dated 3 July 2025, the Securities and Exchange Board of India (SEBI) took stringent action against Jane Street Group and its affiliated entities for alleged manipulation of the NIFTY and BANK NIFTY indices during derivative expiry days by inflating prices in the morning and depressing them in the afternoon, thereby influencing both the intraday trend and the closing settlement value.
Jane Street Group is a global proprietary trading firm (LLC) recognised for its elite talent pool, cutting-edge quantitative models, and sophisticated trading algorithms deployed across major financial markets worldwide
Recruits top graduates from premier institutions including the Indian Institutes of Technology (IITs), offering packages of approximately 3.5 crore annually.
Leverages advanced mathematical modelling and data-driven strategies for systematic trading across global derivatives markets
Enables massive high-frequency activity through proprietary algorithms and sophisticated technological infrastructure
Investigationtriggered by media reports and legal dispute between Jane Street and Millennium concerning intellectual property and trading algorithms
NSE was asked to review Jane Street's trading activity to ascertain if there was any market abuse involved.
SEBIimplemented policies to curb expiry-day volatility as unusualtrading trends persisted across derivative markets
SEBI noted that Jane Street appeared to be involved in large cash-equivalent positions and manipulative practices which were in violation of SEBI's PFUTP regulations, 2003
Despite warnings and cautions, manipulative trades continued in index options, prompting SEBI's enforcement action
SEBI issued interim order to impound 4,843.57 crore and bar trading access pending further proceedings
Jane Street allegedly manipulated theBank Nifty index by strategically executing large buy and sell orders in the cash market, targeting banking stocks. This sophisticated scheme exploited the index's concentrated weighting, especially on expiry days.
SEBI's investigation uncovered two major manipulative strategies employed by Jane Street entities to distort index levels and generate unlawful profits:
SEBI concluded that Jane Street's actions violated critical regulatory provisions designed to maintain market integrity:
Author:Shravan
Prepared On:22/01/26
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