Welcome to AdDekho. In this article, learn about the Jane Street Capital scam. The bank has been banned by SEBI for manipulating the Nifty index. The firm made over ₹36,500 crore through unethical trading strategies.
Jane Street Capital Scam
What is Jane Street Capital?
Jane Street Capital is a globally owned trading firm based in New York. Founded in 2000, the firm employs over 2,600 people with operations in over 45 countries.
Jane Street has reported net revenue of $20.5 billion, a significant portion of which is reported to be derived from the Indian market.
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Scandal exposed
In July 2025, the Securities and Exchange Board of India (SEBI) banned Jane Street and its affiliates from trading in the Indian market.
The allegations against the company were:
Manipulation of the Bank Nifty index on expiry days
Artificially increasing stock prices in the morning
Dumping stocks towards the end of the day to profit from put options
Over ₹36,500 crore in just 21 trading days
SEBI’s investigation revealed that Jane Street had repeatedly used this tactic.
How the manipulation worked in the stock market
Morning buying: Buying large quantities of banking stocks and futures to push the Bank Nifty index up.
Option setup: Simultaneously creating a short position in options, buying puts and selling calls.
Afternoon dumping: Selling stocks to crash the index, making bearish options extremely profitable.
On January 17, 2024, this strategy alone earned the firm ₹735 crore in a single day.
SEBI Action and Legal Consequences
Market ban: Jane Street and its Indian subsidiaries have been banned from trading in the Indian market.
Asset seizure: ₹4,843 crore has been seized for alleged illegal profits.
Regulatory reform: SEBI is now tightening rules on derivatives trading to prevent future manipulation.
Jane Street has denied wrongdoing and is preparing a legal challenge claiming that the transactions were legitimate.
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Global impact
The case has shaken financial markets globally:
Investor confidence: Retail investors feel betrayed, calling for stronger oversight.
Regulatory investigation: Other jurisdictions may now scrutinize Jane Street’s practices.
Market Impact: This ban could reduce liquidity in the Indian derivatives market.
Conclusion
The Jane Street scandal is a significant case brought to light by SEBI. It provides a lesson for both regulators and investors. The case highlights the need for transparency, accountability and oversight in trading. While SEBI’s decision has boosted the morale of the general investor, investors have also expressed their displeasure that the punishment taken against Jane Street is not adequate.
Is Jane Street banned in India?
Now Jane Street Banned in India.
Who is the CEO of Jane Street?
Jane Street has no CEO.
How much do pm at Jane Street make?
Jane Street make $125K–$191K per year,
Is Jane Street profitable?
Sure Jane Street Group made billions of dollars in India.