 "Sebi shares info on Jane Street's high-frequency trading case with US SEC")
The Securities and Exchange Board of India (Sebi) has shared details of its investigation into high-frequency trading (HFT) firm Jane Street with its United States (US) counterpart, the Securities and Exchange Commission (SEC), The Economic Times reported on Wednesday.
The development comes after the SEC sought details of the matter, the report added, citing sources. The probe involves allegations of manipulation in the Indian derivatives market.
A market law expert told the publication that both Sebi and the SEC are a part of the International Organisation of Securities Commissions (IOSCO), a group of national securities regulators. Hence, they are obliged to share information if any of their counterpart seeks it.
What's the case?
Earlier this month, Sebi had temporarily barred Jane Street from accessing Indian markets, accusing the firm of manipulating the popular Bank Nifty index. According to the regulator, Jane Street placed disproportionately large orders at increasingly higher prices to influence index levels, while simultaneously positioning itself in index options to benefit from it.
Sebi stated that between January 2023 and March 2025, Jane Street reported a net gain of ₹36,671 crore in Indian markets. It added that the firm earned ₹44,358 crore through options trading, while incurring losses in stock futures (₹7,208 crore), index futures (₹191 crore), and cash market trades (₹288 crore). Not all of these gains were declared illegal.
The ban was imposed until the US firm returned the alleged unlawful gains of ₹4,840 crore.
In response to Sebi's directive, Jane Street deposited ₹4,843.57 crore into an escrow account and assured full compliance with regulatory orders. An escrow account is an account where funds are held in trust while two or more parties complete a transaction.
Following this, Sebi permitted Jane Street to continue trading in Indian markets, signaling a conditional resolution as the investigation continues.
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