Sebi vs Jane Street: Legal showdown could redefine India's derivatives mkt

Already, the overhaul of the derivatives trading rules - prompted, in part, by the aggressive nature of hft firms like jane street - is beginning to impact market dynamics

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The Jane Street–Sebi saga is more than a legal dispute — it’s a litmus test for India’s ambitions as a global financial hub. | Illustration: Binay Sinha

Khushboo Tiwari Samie Modak Mumbai

8 min read Last Updated : Jul 10 2025 | 10:21 PM IST

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A legal battle is looming — one that could reshape India’s derivatives market, the world’s largest by trading volume, and set a precedent for how regulators worldwide draw the line between clever trading and market abuse.

The genesis of this battle lies in the sweeping crackdown the Securities and Exchange Board of India (Sebi) has launched against Jane Street, a US-based high-frequency trading (HFT) firm. Sebi has impounded ₹4,843 crore in alleged “unlawful gains”, accusing Jane Street of orchestrating a sophisticated “sinister” scheme to manipulate the popular Bank Nifty index through aggressive derivative trading strategies.

Jane Street, a global titan

Topics : SEBI Nifty F&O Markets F&O Sebi norms share market stock market trading