The Securities and Exchange Board of India (SEBI) has the Jane Street Group (JS Group) from accessing the securities market and ordered the impounding of INR48.4 billion (USD565.6 million). JS Group has allegedly violated several provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 ().
This action was taken after the group was found to be engaging in market manipulation and other unfair trade practices in the securities market.
The SEBI had initiated an inquiry into JS Group’s activities for unauthorised use of proprietary trading strategies in Indian markets. JS Group was prima facie found to violate the PFUTP Regulations, following which the National Stock Exchange (NSE) directed JS Group to refrain from taking large cash-equivalent positions as well as engaging in certain trading patterns.
In May 2025, the SEBI observed that JS Group had violated the NSE’s directions and continued to run large cash-equivalent positions in index options.
As a result, the SEBI has passed an interim order restricting JS Group and directed it to deposit its unlawful gains of INR48.4 billion into an escrow account with a lien in favour of the SEBI. This amount cannot be released without permission from the authority.
Several other restrictions have also been placed, effectively banning JS Group from the securities market by prohibiting it from buying, selling or dealing in securities.
SEBI’s order also restricts all debits from JS Group’s bank accounts, the transfer or redemption of mutual funds, and disposing or alienating assets and properties in India.
However, the order does allow JS Group to close out or square off open positions in any exchange-traded derivative contracts within three months from the date of the order or at the expiry of such contracts, whichever occurs earlier. It can settle pay-in and pay-out obligations in respect of transactions, if any, that took place before the close of trading on the date of this order.
JS Group is a global proprietary trading firm founded in 2000 and currently headquartered in New York. The group has 21 days from the date of the order to reply to the SEBI.
