Jane Street returns to Indian stock market
American trading giant Jane Street has re -enacted the Indian stock market. SEBI (Securities and Exchange Board of India) has given the green signal to this New York company after depositing a huge amount of Rs 4,844 crore in Escro account. This amount was ordered by SEBI to freeze as “illegal profits”. Now SEBI has formally reported the removal of the ban to Jane Street via email but has also warned that every action will be monitored like an eagle.
Why did SEBI take action on Jane Street?
In early July, SEBI had made serious accusations of manipulating the stock market on Jane Street. SEBI said that this company was manipulating index like Nifty and Bank Nifty for its benefit. Jane Street’s tricks came on SEBI radar, especially at the expiry day (when the duration of options contracts ends). SEBI in its investigation found that the company earned a profit of Rs 36,502 crore from January 2023 to March 2025, out of which Rs 43,289 crore came only from index options but also caused a loss of Rs 7,687 crore in the cash and futures segment. After this, SEBI ordered to freeze Rs 4,840 crore as “illegal”. SEBI was accused that Jane Street deliberately mislead the retail traders by up and down the index.
There was a panic in the market on Jane Street
The premium turnover of the index options in the National Stock Exchange (NSE) fell to 35% after the ban on Gen Street. On July 17, the turnover on expiry day was just Rs 39,625.77 crore, which was much less than the June 60,605 crore. Every week in July, the volume declined on the expiry day, as the absence of Jane Street shocked the ability to take risks in the market. The company shook the index in big shares like Reliance, TCS, SBI, HDFC Bank and Infosys.
SEBI warning and response to Jane Street
SEBI warned of Jane Street through NSE in February 2025, but the company did not change its strategy. After this, SEBI took strict steps and issued an interim order on 3 July. It was said in this order that if Jane Street deposits Rs 4,844 crore in the escrow account, then the ban can be removed. The company accepted this condition and requested SEBI to remove the ban last week. Confirming this, SEBI said that he is investigating the matter in depth, but the ban has been removed at the moment.
SEBI will keep strict monitoring on Jane Street
Jane Street can now start trading in the Indian market, but SEBI and stock exchange will be closely monitored on every activity. SEBI has made it clear that the company will have to follow the rules, otherwise strict action can be taken again. This case is a big lesson for the Indian stock market, because the tricks of big players like Jane Street can shake the trust of retail investors.