Jane Street allowed to trade with conditions and strong monitoring by exchanges

Sebi says restrictions lifted against Jane Street, but strong monitoring to follow.

Market regulator the Securities and Exchange Board of India (Sebi) has confirmed through a press release that restrictions have been lifted against Jane Street Group. Sebi, in a press release on Monday evening, said, “Upon compliance with the directions in clause 62.1 (creation of an escrow account with a lien marked in favor of SEBI, for an amount of Rs 4,843,57,70,168/-), the directions stipulated in clauses 62.2, 62.3, 62.4, 62.5, 62.7, 62.8, and 62.10 of the interim order shall cease to apply.” The clauses mentioned above relate to restrictions on accessing the securities market, freezing the securities, and restrictions on bank accounts, transfer of assets, etc. As per the Sebi order, all of this will go away.

As per Sebi press release, Jane Street entities have been directed to cease and desist from directly or indirectly engaging in any fraudulent, manipulative or unfair trade practice or undertaking any activity, either directly or indirectly, that may be in breach of regulatory norm, including by dealing in securities using any of the patterns identified or alluded to in the interim order. Sebi press release further added that, entities have confirmed that they will comply with this.

Stock Exchanges have been directed to closely monitor any future dealings and positions of Jane Street Group on an ongoing basis. So that entities do not either directly or indirectly indulge in any kind of manipulative activity, including by dealing in securities using any of the patterns identified or alluded to in the interim order, till the completion of the investigation by SEBI and the consequent proceedings, if any. Sebi said, exchanges have confirmed that they will comply with this. Surveillance and Investigation department of exchanges have issued a circular based on the Sebi press release issued on Monday.

SEBI reaffirmed that regulator remains committed to following due process and ensuring the integrity of the securities market.

What Triggered SEBI’s Action?
There were allegations that the Jane Street Group manipulated Indian equity indices, particularly the Bank Nifty and Nifty, by exploiting specific trading patterns. SEBI conducted an investigation into trades between January 2023 and May 2025.
Preliminary findings suggest that the firm used multiple strategies to maximize its profits, which SEBI found to be manipulative. SEBI alleged that, on some occasions, the Jane Street entities bought heavily in cash and futures in the morning and heavily sold options in the afternoon, thereby creating deception for common traders.

Based on the initial investigation, SEBI suspects that the Jane Street entities made an illegal gain of Rs 4,843.5 crore. SEBI directed the Jane Street entities to deposit the amount in an escrow account, which Jane Street has complied with.