SEBI Interim Order Against Jane Street for Bank Nifty Manipulation
Why in the news
SEBI issued a strict interim order on 4 July 2025 against the US-based firm Jane Street and linked entities, accusing them of rigging the Bank Nifty index.
Key facts
- Period of gains: January 2023 to March 2025.
- Method alleged: large, high-priced orders in the cash market on weekly expiry days to benefit options positions.
- Law: possible breach of PFUTP norms (Prohibition of Fraudulent and Unfair Trade Practices) under the SEBI Act.
- Exchanges must watch for indirect market access.
| Measure | Effect |
|---|---|
| Ban | No new positions or access to securities markets during the probe |
| Escrow | Entire alleged proceeds to be deposited with a scheduled commercial bank |
| Freeze | No debits from accounts without SEBI permission |
About Jane Street
- New York-based proprietary trading firm, 2,600+ employees.
- Net trading revenue of $20.5 billion in 2024, nearly double 2023.
- Profit from India: ₹36,502 crore between 1 January 2023 and 31 March 2025.
Exam angle
- Regulator: SEBI; index: Bank Nifty; related terms: PFUTP, escrow, interim order.