SEBI likely to investigate Jane Street's Sensex options trades: Report

SEBI likely to investigate Sensex options trade of Jane Street, says report

Market regulator Securities and Exchange Board of India (SEBI) will extend its investigation to Sensex options contracts as well for alleged index manipulation by Jane Street, Mint reported citing people familiar with the matter.

The regulator barred the US trading entity Jane Street and three of its other related entities from accessing the market, and directed them to deposit alleged illegal gains of Rs 4,843.5 crore. SEBI alleged that Jane Street manipulated key indices like Nifty 50 and Bank Nifty on expiry days. The regulator has also directed for debit freeze on bank accounts of such entities.

According to the latest report, the investigation will no longer be limited to NSE indices, but to those of BSE as well, whose popularity significantly soared over the past two financial years.

Moneycontrol couldn't independently verify the report.

Jane Street made a profit of Rs 36,671 crore between January 2023 and March 2025 by manipulating the derivative markets, as per SEBI. Jane Street has denied the claims.

SEBI order said, considering the unprecedented scale and complexity of the violations involved, the time needed to complete the investigation and consequent action can be significant. If such investigation eventually does not result in a finding against the entities, the adverse impact of the interim restraint on the entities may not be remediable.

Also read: Jane Street unlikely to get any immediate relief against SEBI order, say legal experts

SEBI said, if interim directions are not passed now, and it transpires after detailed investigation that illegal gains had in fact been made which were diverted, the loss to market integrity, investor protection, investor confidence and the futility of the post-investigation remedial measures, all will result in severe and irreparable damage.

Recently, a report claimed that the Income Tax department may also launch a probe in the issue. An Economic Times report said that the I-T officials may see whether Jane Street has violated any Indian tax provisions or not. The ET report further said that the violations may be linked to the framework under the General Anti-Avoidance Rules and norms related to permanent establishment.