**Jane Street Group Challenges SEBI’s Accusations of Index Manipulation**
Jane Street Group LLC has responded to allegations from India’s securities regulator, asserting that the claims regarding its trading activities in the country are based on “many erroneous or unsupported assertions.” The American proprietary trading firm, known for its market-making activities, expressed its intention to vigorously defend itself against these accusations.
In a recent communication to its employees, Jane Street firmly rejected the basis and details of an interim order issued by the Securities and Exchange Board of India (SEBI), which accused the firm of engaging in “index manipulation.” This order, issued last Friday, temporarily barred Jane Street from participating in India’s securities market and indicated plans to seize 48.4 billion rupees (approximately $564 million) in alleged unlawful gains. According to SEBI, Jane Street reported trading gains of around $4.3 billion from January 2023 to March 2025.
“We reject the premise and the substance of the Order in the strongest possible terms,” Jane Street stated, expressing disappointment over the mischaracterization of the firm. The company criticized SEBI’s report for its inflammatory language and claimed it was “fundamentally mistaken” about the nature of Jane Street’s trades. The firm is currently preparing a formal response to the regulator and evaluating its legal options.
SEBI’s report alleged that Jane Street ignored attempts by the regulator and exchanges to modify its trading behavior, a claim that Jane Street disputes. The firm emphasized its efforts to engage with SEBI, stating that it had been responsive to inquiries since August 2024. After receiving communications from two Indian stock exchanges in February, Jane Street paused its trading activities to better understand their concerns. Senior leaders from Jane Street traveled to Mumbai to meet with representatives from the National Stock Exchange of India Ltd., and subsequently made adjustments to their trading practices to align with the exchanges’ preferences.
Since February, Jane Street has made ongoing attempts to communicate with SEBI but claims to have been consistently rebuffed, with the regulator not responding to requests for discussions regarding their concerns.
**Allegations of Index Manipulation**
SEBI’s extensive 105-page report outlined various instances of alleged index manipulation by Jane Street. One notable incident occurred on January 17, 2024, when the firm reportedly traded aggressively to inflate prices in the underlying cash and futures markets on the day weekly index options linked to the NSE Nifty Bank Index were set to expire. The report claimed that Jane Street executed significant bearish options trades and subsequently profited from unwinding some positions while allowing others to expire.
In response, Jane Street clarified that what SEBI labeled as “intraday index manipulation” was, in fact, a standard practice of index arbitrage trading, which is common in financial markets and serves to align the prices of related instruments.
As the situation develops, Jane Street remains committed to defending its reputation and addressing the allegations put forth by SEBI.
**FAQ**
**What is Jane Street Group’s response to SEBI’s allegations?**
Jane Street Group has strongly rejected the allegations of index manipulation made by SEBI, asserting that the claims are based on erroneous assertions and that the firm intends to defend itself vigorously.
