Share Market News / First they earned the money, now this is how SEBI will recover the money from Jane Street

Share Market News: The Securities and Exchange Board of India (SEBI) has further intensified its investigation against US global trading company Jane Street. The regulator has now decided to bring the company's activities under scrutiny not only in the Indian market but also in other indexes and exchanges. Earlier, SEBI had barred Jane Street from trading in the Indian stock market and issued an order to seize the company's funds worth about Rs 4,843 crore. Now the company's troubles seem to be increasing due to SEBI's strict measures in this matter.

SEBI's investigation and Jane Street's response

Mint's sources have revealed that the investigation into the allegations of irregularities against Jane Street may take time, but SEBI has made its investigation more comprehensive and faster. On the other hand, Jane Street has denied this order of SEBI and claimed that it fully complies with all regulatory rules. The company has said that it will discuss the issue with SEBI. SEBI has allowed Jane Street to file a reply or objection within 21 days. Apart from this, the company also has the option to challenge this order in the Securities Appellate Tribunal (SAT).

What is the whole matter?

SEBI on Friday started an investigation based on suspected irregularities in the stock market, in which the name of US trading company Jane Street came to the fore. SEBI imposed a trading ban on the company and four other firms associated with it and ordered the seizure of Rs 4,843 crore. SEBI alleges that Jane Street made a profit of Rs 36,671 crore by using smart strategies in shares, futures and options. The company adopted a special strategy especially on the expiry day of Bank Nifty and Nifty.

Jane Street's strategy

According to SEBI, Jane Street used to buy shares and futures in large quantities in the morning. After this, it used to sell shares in the afternoon by taking short positions in options, which led to a fall in the index and profit was made from the options. Many times, the index was pushed up by buying Nifty shares in the last two hours of trading and taking long positions in options, so that the options could be sold at a profit. SEBI claims that through such strategies, Jane Street manipulated the market through its affiliates.

Status of derivatives market in India

India's derivatives market is the largest in the world. In April 2025, there were 7.3 billion trades here, which is about 60% of the global equity derivatives trading. A large number of small investors (retail investors) participate in this market, due to which SEBI has imposed some strict rules, such as reducing the number of contracts and increasing the size of the trading lot. These rules have reduced the participation of small investors on the expiry day, but still investors' focus remains on short-term trading and expiry day.

What's next?

This action of SEBI against Jane Street is an important step towards maintaining the transparency and fairness of the Indian stock market. However, it may take time to reach a final conclusion on this matter, as the scope of the investigation has now become wider. This case may not only cause financial losses for Jane Street