Jane Street accused of manipulation of ₹4,844 crore! SAT orders SEBI to file a reply in 3 weeks. In this article, we will know the full details of the case.
The Securities Appellate Tribunal (SAT) has directed the Securities and Exchange Board of India (SEBI) to file its reply within three weeks on the appeal of US trading firm Jane Street Investments. In fact, two months ago, SEBI had banned the trading of the company, accusing Jane Street of making illegal profits of ₹4,844 crore and manipulating the stock market.
Against this, Jane Street Group filed a petition in SAT on 3 July 2025, challenging the action of SEBI. SEBI claims that Jane Street caused losses to retail investors by manipulating Nifty 50 and Bank Nifty Index Options.
Timeline of Jane Street vs SEBI case.
- 3 July 2025 → SEBI banned trading of Jane Street.
- Allegations → Jane Street made huge profits by manipulating Nifty 50 and Bank Nifty.
- January 2023 – May 2025 → Jane Street earned ₹36,671 crore, of which ₹4,844 crore was considered illegal.
- 11 July 2025 → Jane Street deposited ₹4,844 crore in an escrow account.
- 18 July 2025 → SEBI allowed Jane Street to resume trading but put a condition to avoid manipulative trading patterns.
Jane Street’s stand: Questions on SEBI’s action.
- Jane Street says that SEBI did not provide them with the necessary documents, due to which they were not able to present their case properly.
- The company claims that SEBI’s own surveillance team did not find any manipulation in the initial investigation.
- According to Jane Street, they had only adopted Index Arbitrage Strategy, which is a legal trading strategy.
- For now, Jane Street has clarified that it will not do options trading in India.
Arbitrage Strategy vs Market Manipulation.
Arbitrage Strategy (Legal)
- In this, profit is made by buying and selling the same stock at the difference in price in different markets.
- Example: The stock is selling at ₹ 100 on BSE and ₹ 102 on NSE.
- Trader will buy from BSE and sell on NSE → Legal profit of ₹ 2.
Market Manipulation (Illegal)
- In this, the stock prices are deliberately influenced.
- Example: A trader makes a huge purchase of shares and spreads the rumor that the company has got a big contract.
- Stock price rises → Sells at a higher price and makes a profit → Loss to other investors.
SEBI’s investigation and further action.
- SEBI has directed NSE and BSE to keep a close watch on all future trades of Jane Street.
- If Jane Street adopts a manipulative trading pattern again, SEBI will take strict action.
- SEBI has also started investigating Sensex Options Contracts, expanding the scope of its investigation.
- It is suspected that Jane Street may have manipulated the BSE Index as well.
- It may take several months for the final report to come.
Disclaimer: The information given in this article is for educational purposes only. If you want to invest in the stock market, you should learn about the stock market yourself or consult a financial advisor and certified expert. The stock market is risky. Before making any investment, you must consult an expert.
Conclusion
In this article, you will find out how the Jane Street vs SEBI case could prove to be a major turning point for India’s derivatives market. While SEBI is taking strict measures to maintain transparency in the market, Jane Street claims that it had only done legal arbitrage trading. Now it has to be seen in whose favour the final decision of this high-profile case goes after the investigation of SAT and SEBI. If you liked the information given in this article, please like, share and comment on this article.