The Securities and Exchange Board of India (SEBI) has barred U.S.-based trading firm Jane Street Group and its affiliated entities from accessing the Indian securities market, citing alleged manipulation of the benchmark Nifty 50 index.
In an interim order, the market regulator stated that Jane Street and its entities are prohibited from buying, selling, or otherwise dealing in securities, either directly or indirectly.
SEBI has also ordered the impounding of alleged unlawful gains amounting to over Rs 4,843.57 crore. The regulator claimed the firm used sophisticated strategies to artificially influence the Nifty 50 index, enabling it to profit from significantly larger positions in index options.
Additionally, Indian banks have been instructed to restrict debits from accounts held by Jane Street entities, either jointly or individually, without prior SEBI approval.
The order directs the concerned entities to close or square off their existing positions within three months or by the expiry of the respective contracts, whichever comes earlier.
Founded by a small group of traders and technologists in a New York office, Jane Street has grown into a global proprietary trading firm with over 3,000 employees across five offices worldwide. The firm trades a wide range of asset classes across more than 200 venues in 45 countries.