Jane Street profit scam: SEBI Alleges Jane Street Manipulated Dalal Street for ₹36,500 Crore in Profits
Jane Street profit scam: India’s market regulator, SEBI, has accused global trading firm Jane Street Group of unfairly manipulating the Indian stock market—particularly the BANKNIFTY index—to earn massive profits.
According to SEBI, Jane Street used questionable trading tactics to influence market prices and made over ₹36,500 crore, mainly through index options trading.
Who is Jane Street?
Jane Street is a global trading company that buys and sells stocks, derivatives, and other financial products. It has offices in the US, Europe, Asia and including India also.
In India, Jane Street works through companies like:
- JSI Investments Pvt Ltd
- JSI2 Investments Pvt Ltd
- Jane Street Singapore Pte Ltd
- Jane Street Asia Trading Ltd
All these companies are of India part of the Jane Street Group.
What triggered the SEBI investigation?
In April 2024, a legal dispute between Jane Street and Millennium Management in the US made headlines. Reports suggested that Jane Street’s trading strategies may have been misused in the Indian options market. This alert triggered SEBI’s attention and led to the start of its investigation.
SEBI then:
- Asked the National Stock Exchange (NSE) to look into it,
- Talked with Jane Street representatives,
- Checked their trading patterns,
- And finally, issued a detailed order in July 2025.
What did Jane Street allegedly do?
SEBI found that Jane Street manipulated prices on days when stock index are options like BANKNIFTY expire. Here is how they did it from step-by-step:
How Much Money Did Jane Street Make?
- Total profit from January 2023 to March 2025 is ₹36,502 crore
- Profit from index options alone is ₹43,289 crore
- Losses in other areas (stocks/futures) is ₹7,687 crore
On January 17, 2024, Jane Street made ₹735 crore profit using this strategy
Who Was Affected?
SEBI said millions of small traders were unknowingly impacted. For example, on January 17, 2024:
- Only 4,675 traders bought and sold BANKNIFTY stocks
- But over 16 lakh traders traded BANKNIFTY options
These option traders depended on the index’s movement, which is usually influenced by stock and futures trading, to make their decisions. SEBI says Jane Street manipulated these price signals, misleading many option traders.
Did SEBI Warn Jane Street?
Yes. In February 2025, the National Stock Exchange (NSE) sent a warning letter to Jane Street, telling them not to take such a large positions and use these trading methods. But SEBI says Jane Street ignored the warning and kept doing similar trades in May 2025.
What Happens Now?
Jane Street profit scam: SEBI has issued by temporary order by under the SEBI Act. Jane Street is now barred from using these trading strategies while the investigation continues. The case is still under review, and if SEBI confirms any wrongdoing, stricter action and penalties could follow.
Final Takeaway
Jane Street, a major global trading firm which is under SEBI’s investigation for allegedly manipulating index movements on expiry days to earn many massive profits. The case raises serious concerns about fairness and transparency in India’s financial markets—particularly in the rapidly growing options trading space.
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