SEBI banned Jane Street groups and impounded ₹4,843.5 crore over Bank Nifty

On 3 July 2025 India's markets regulator SEBI banned four affiliated Jane Street entities — JSI Investments, JSI2 Investments, Jane Street Singapore and Jane Street Asia Trading — by interim order. The allegation was that the group manipulated the expiry-day settlement of Bank Nifty index derivatives, futures tied to the Nifty Bank index, on a string of expiry days between January 2023 and March 2025 and on the May 2025 expiries.

The alleged profit was enormous: ₹36,502 crore (roughly $4 billion) said to have been pocketed from the manipulation, with ₹43,289 crore of gains attributed to index options. SEBI ordered the impounding of ₹4,843.5 crore of the alleged unlawful gains.

Jane Street deposited the disputed sum in escrow and asked SEBI to lift the ban while its investigation continued, arguing the freeze punished a compliant firm before any finding. The order is the decision-with-a-cost: a market maker with a sizable India presence had built a trading edge it could not defend, and the regulator turned that edge into a suspended operation and a ₹4,843.5 crore impoundment.