In a groundbreaking SEBI interim order dated July 3, 2025, the regulator barred Jane Street from Indian markets and seized ₹4,843 crore (~$570 million) of alleged illicit gains.
SEBI accuses the proprietary trading giant of orchestrating a “pump‑and‑dump” scheme in the BANKNifty index—purchasing large volumes of banking stocks and futures mid‑expiry day to inflate prices, then shorting options to profit .
A key twist: UAE‑based hedge‑fund veteran Mayank Bansal exposed these manipulative patterns. He reportedly provided SEBI with a detailed presentation in December 2024, tracing coordinated expiry‑day distortions as early as July 2023. Bansal stated, “It was like real estate at ₹ 100 one day, and water priced at ₹ 1 lakh the next” . His tip-off prompted SEBI’s February warning and the eventual interim ban.
Jane Street vehemently denies wrongdoing, calling SEBI’s findings “extremely inflammatory” and pledging to contest them within 21 days. The firm claims its actions were standard arbitrage and that it ceased trading upon exchange concerns.
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