Jane Street Barred from Indian Markets Over $566M Nifty 50 Manipulation Claim

Mumbai — India’s securities regulator, SEBI, has barred U.S.-based trading firm Jane Street from participating in the Indian markets. The action follows allegations that the firm manipulated the Nifty 50 index and gained ₹48.4 billion ($566.3 million) through unfair trading.

In its interim order, SEBI froze the company’s Indian bank accounts and instructed banks not to allow any debit transactions without approval. Jane Street allegedly used a strategy of early morning bulk purchases followed by sell-offs to drive index movements, profiting from large options trades.

The regulator claimed the conduct lacked economic logic and violated market integrity, especially since the firm continued these practices despite a February warning from the National Stock Exchange.

Jane Street responded, stating it disagrees with SEBI’s findings and will cooperate fully with the investigation.