Fied by Sebi for investigation within the examination period, Jane Street earned ₹43,289 crore in index options and another ₹900 crore in stock options, while making losses of ₹7,208 crore in stock futures, ₹191 crore in index futures, and ₹288 crore in cash equity. The net profit earned by the group stood at ₹36,502 crore.
In another strategy labelled “extended marking the close”, Jane Street was found to have made aggressive directional trades in the final 30-60 minutes of trading to engineer the index closing level. This was key since settlement prices for options are derived from the day’s close.
In a particularly serious instance, on 15 May, 2025— despite receiving a prior caution from the National Stock Exchange (NSE)—the same pattern re-emerged, this time on Nifty expiry. Sebi noted this was a “cynical violation of the caution letter issued to the JS Group on February 6, 2025.”
The investigation, which began in April 2024 after foreign media reports flagged global litigation involving Jane Street’s trading strategies, focused on derivatives expiry-day trades. Forensic analysis of timestamps, order placement vs. last traded price, and gross traded values revealed patterns closely tied to
Its options exposures. According to Sebi, this indicated a calculated design to manipulate index levels.
Legal experts say the burden shifts to Sebi to prove manipulative intent.
“Large, aggressive, or even dominant trading strategies are not per se unlawful unless they are deceptive or fraudulent. Sebi’s case relies on patterns and price impact rather than direct evidence of deception, which could face scrutiny. This matter could set an important precedent for how Indian law treats complex algorithmic strategies in the derivatives market,” said Sumit Agrawal, founder of Regstreet Law Advisors and a former Sebi official.
The investigation, which began in April 2024 after foreign media reports, focused on derivatives expiry-day trades.