After ₹4,843 crore freeze, is SEBI about to dig deeper into Jane Street’s market moves?

India’s market regulator may expand its investigation into global trading giant Jane Street, following serious allegations of market manipulation that led to a sweeping interim crackdown this week.

According to reports, SEBI may widen its probe to examine Jane Street’s trades across multiple indices and exchanges. While the investigation could take time, the report claimed it’s unlikely to cause broader market disruption.

On Thursday, SEBI issued a 105-page interim order freezing Jane Street’s operations in Indian markets. The order restrains the firm from buying, selling, or dealing in securities and mandates the deposit of ₹4,843.57 crore in alleged unlawful gains into an escrow account. 

Jane Street’s bank, demat, and custodial accounts are also frozen—no debits allowed without SEBI’s nod.

The regulator’s order prohibits the disposal of any assets in India until the escrow deposit is made. Jane Street has 21 days to file objections and can seek a personal hearing, but restrictions will remain until SEBI issues further instructions.

This enforcement comes as retail participation in India’s derivatives markets begins to cool, following SEBI’s recent moves to rein in speculative trading. Despite this, the report notes that around 90% of investors in the F&O segment still post losses.

In a statement to Reuters, Jane Street said it disputes SEBI’s findings. “Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world,” a spokesperson said.

SEBI has directed exchanges to monitor any future trades by Jane Street to prevent recurrence of the trading patterns flagged in the order.