Jane Street seeks more time to answer Sebi's ₹4,844 crore market manipulation charges

Embattled trading firm Jane Street said on Monday that it has sought an extension from the capital markets regulator, the Securities Exchange Board of India, to respond to the interim order issued on July 3, following accusations that the U.S.-based trading firm was manipulating the securities markets.

“Jane Street is committed to conduct that upholds the integrity of India’s capital markets and contributes to their continued development. We are engaging constructively with Sebi and have sought an extension to respond to the interim order issued on July 3,” said a Jane Street spokesperson.

On July 3, Sebi issued an interim order barring the U.S.-based investment firm and its group entities from accessing the securities market in India, while directing them to disgorge ₹4,843.57 crore in alleged unlawful gains. It also gave the high-frequency trading firm 21 days to respond to the order.

“The total amount of unlawful gains earned by the JS Group from the alleged violations, i.e., ₹4,843,57,70,168, shall be impounded, jointly and severally. Entities are directed to open an escrow account in a scheduled commercial bank in India to deposit jointly and severally the aforesaid amount of unlawful gains,” Sebi’s 105-page interim order stated.

The Jane Street Group entities operating in India—JSI Investments, JSI2 Investments, Jane Street Singapore, and Jane Street Asia Trading—allegedly manipulated Bank Nifty, the 12-stock banking index, and benefited from unlawful gains worth ₹4,843.6 crore. These companies have also been barred from accessing the securities market and buying, selling, or otherwise dealing in securities, as per Sebi.

“JS Group first aggressively bought significant quantities of BANKNIFTY underlying constituent stocks and futures, temporarily pushing up or lending considerable support to the BANKNIFTY index. In the second patch of the day, as has again been demonstrated by data and analysis, JS Group was seen to practically and effectively reverse all of this buying activity from the first patch, by aggressively selling large quantities of BANKNIFTY underlying constituent stocks and futures,” the Sebi order by G. Ananth Narayan, Whole Time Member, stated.

On July 14, Sebi confirmed that Jane Street has deposited ₹4,843.58 crore into an escrow account, as directed under the interim order issued earlier this month. Following the deposit, the firm has requested that Sebi lift the trading restrictions imposed on its participation in the Indian equity markets.

“This is to confirm that Jane Street has informed Sebi that in compliance with paragraph 62.1 of the July 3, 2025 Interim Order, a sum of INR 4,843,57,70,168/- has been credited to an escrow account with a lien marked in favour of SEBI,” the regulator had notified. Following this deposit, Jane Street has requested Sebi to consider lifting certain conditional restrictions imposed under the interim order. The firm has urged the regulator to issue appropriate directions that would ease constraints on its trading activities, citing compliance with the directive as the basis for reconsideration.

“They (Jane Street) have further stated that this action has been undertaken by them without prejudice to their rights and remedies which remain available to them in law and equity,” Sebi had said.