SEBI Bans Jane Street for Stock Market Manipulation: What Went Wrong

The Securities and Exchange Board of India (SEBI) has issued an interim ban on four Jane Street Group entities for manipulating Indian stock markets, particularly BANKNIFTY index derivatives on expiry days. SEBI found that the group used a deceptive trading strategy—buying stocks to inflate index levels and then shorting options for profit, leading to ₹734 crore gain on one day alone. Despite an NSE warning in February 2025, the group continued such trades. SEBI noted ₹43,289 crore profits from index options, raising red flags. The regulator deemed immediate action necessary to protect market integrity and retail investors, pending final orders.