SEBI Cracks Down On Market Abuse, Bars Jane Street From Trading

Mumbai: The chairperson of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, has said that any form of market manipulation will not be allowed. He was speaking in Mumbai on Saturday, a day after SEBI took strict action against US-based trading firm Jane Street and three of its related companies.

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Stronger Watch on Illegal Trading

Pandey said SEBI has increased its market surveillance to catch and stop illegal trading activities. “Market manipulation is not going to be tolerated,” he told reporters. He added that SEBI will continue to take tough steps against unfair practices in the stock market.

SEBI’s Action Against Jane Street

SEBI has banned Jane Street and three of its related firms from the Indian markets. The firms are:

• JSI2 Investments Private Ltd

• Jane Street Singapore Pte. Ltd

• Jane Street Asia Trading Ltd

These firms have been told to deposit Rs 4,843.5 crore, which SEBI says are illegal profits made through trading in index options on Indian stock exchanges. According to SEBI, Jane Street earned Rs 43,289.33 crore from such trades between January 1, 2023, and March 31, 2025.

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Bank Accounts Frozen

SEBI has also ordered a debit freeze on the bank accounts of all these firms. This means they cannot withdraw any money from their accounts. The order affects all Jane Street Group companies operating in India.

Transparency and Good Practices a Must

At a Chartered Accountants event, Pandey also urged professionals to help in ensuring good corporate governance. He said that clear reporting of related party deals, timely disclosures, and avoiding conflicts of interest are all necessary. “These are not optional duties,” he said. However, he also noted that compliance rules should not be too heavy to follow.

Jane Street Responds

Jane Street has disagreed with SEBI’s order. The firm said it will continue to speak with the regulator and present its side.

(With IANS Inputs)