'Market manipulation is not going to be tolerated...': Sebi chief Tuhin Kanta Pandey 

A day after India’s market regulator barred US-based trading giant Jane Street Group and its affiliates from operating in Indian markets, SEBI chairperson Tuhin Kanta Pandey asserted on Saturday that market manipulation will not be tolerated.

After speaking at the 77Th Founding Day of Bombay Chartered Accountants’ Society on Saturday, Pandey said: “At both the exchange and SEBI levels, we have significantly strengthened our surveillance mechanisms. This is fundamentally a surveillance matter, and we are monitoring developments more closely.”

Addressing concerns about possible links between Jane Street’s activities and other foreign portfolio investors, Pandey added: “All I can say is that market manipulation will not be tolerated.”

In a detailed 105-page interim order released on Friday, SEBI accused Jane Street of manipulating the Nifty and Bank Nifty indices through sophisticated trading strategies timed around expiry days, ultimately misleading retail investors. The regulator has frozen Rs 4,840 crore, which it identifies as profits earned through alleged market misconduct, and imposed trading bans on four Jane Street entities.

According to SEBI, Jane Street amassed Rs 36,502.12 crore in profits between January 2023 and March 2025. A significant chunk—Rs 43,289 crore—was derived from trading index options, although this was partly reduced by Rs 7,687 crore in losses from activities in the cash and futures segments. The watchdog has directed banks to freeze Rs 4,840 crore believed to be illicit gains.

One of the most striking instances cited by SEBI occurred on January 17, 2024, when Jane Street reportedly booked its highest single-day profit of Rs 734.93 crore. On that day, the firm allegedly drove the Bank Nifty index higher in the morning session before sharply pulling it down in the afternoon. This orchestrated volatility allowed Jane Street to profit substantially from bearish options positions, while other traders were misled by the dramatic swings in the index.

In February 2025, SEBI, via the NSE, sent a cautionary notice to Jane Street, urging the firm to stop deploying such trading strategies. However, Jane Street dismissed the warning and persisted with similar trades. This defiance of regulatory instructions was a significant factor behind SEBI’s decision to impose a ban.