Synopsis: Global trading giant Jane Street has deposited ?4,843.5 crore in SEBI’s escrow account after being barred from Indian markets over alleged index manipulation. The firm allegedly used “marking the close” strategies to make illicit profits exceeding ?32,000 crore.
In a major regulatory development, New York-based trading firm Jane Street Group has reportedly deposited ?4,843.50 crore in an escrow account mandated by the Securities and Exchange Board of India (SEBI). This comes after the market regulator issued an interim order barring the firm from operating in Indian markets for alleged intra-day index manipulation.
According to SEBI, Jane Street engaged in trades that lacked “plausible economic rationale,” aggressively manipulating Bank Nifty options and other instruments to profit from short-term price movements. The trading pattern was allegedly part of a known tactic called "marking the close", where large trades near the market’s end were used to influence closing prices.
While SEBI claims that Jane Street profited to the tune of ?32,681 crore, the firm strongly refuted the allegations, stating:
"We reject the premise and the substance of the order in the strongest possible terms."
The regulator’s investigation, expected to continue over the next 6–9 months, could lead to a show cause notice and final order against Jane Street. Until then, the firm remains barred from India’s stock exchanges.
Jane Street, which operates as a proprietary trading firm using its own capital, allegedly repatriated huge sums abroad, drawing criticism for exploiting regulatory loopholes. The SEBI probe highlights concerns over high-frequency and quant-based trading in emerging markets like India.
Disclaimer: This article is based on publicly available information and media reports. The case is under investigation, and the final outcome will depend on the findings of the Securities and Exchange Board of India (SEBI).
