Money or market rules—what matters more?
That’s the big question after SEBI exposed Jane Street, a global trading giant, for manipulating the Bank Nifty index on expiry days. The tactics were bold, the profits massive, and the damage—serious.
Let’s break it down.
The Setup: Morning Action, Evening Exit
On 14 different expiry days, Jane Street followed a clear pattern.
In the morning, it heavily bought Bank Nifty futures and sold options worth thousands of crores. At the same time, it also placed trades in the cash segment.
Then came the twist.
After 12 PM, the game changed. Jane Street and its related entities dumped massive volumes of futures, pushing the index lower just before closing time. This hit the closing value of Bank Nifty, which directly impacted the options market—where they were already sitting on huge short positions.
The Proof: Numbers Don’t Lie
Take January 17, 2024.
Jane Street:
- Bought Bank Nifty futures worth ₹4,370 crore
- Sold Bank Nifty options for a staggering ₹32,115 crore
- After noon, sold futures worth ₹5,372 crore
Net result?
An options profit of ₹735 crore, and a small loss in futures—total profit ₹673.4 crore.
On July 10, 2024, the story repeated.
Futures sold: ₹2,800 crore
Options short: ₹44,154 crore
Profit: ₹225 crore.
SEBI called this what it was—a pattern of manipulation.
SEBI’s Hammer Falls
The Securities and Exchange Board of India (SEBI) didn’t hold back.
They:
- Barred Jane Street and 3 related entities from market activity
- Ordered them to pay back ₹4,843.5 crore
- Froze their bank accounts
- Called out their violation of fraud and unfair trade practices (PFUTP)
Even after warnings, Jane Street kept going. In May 2025, they tried the same play in Nifty expiry too.
So, this wasn’t some rookie mistake—it was a calculated, repeated tactic.
The Real Question
What began as smart trading soon turned into market distortion. Jane Street, known globally for its tech-driven strategies, crossed the line from innovation to exploitation.
The tension here is clear:
Are traders chasing efficiency—or just the next shortcut to profit?
In markets, it’s one thing to be smart.
It’s another to rig the game and call it strategy.
Jane Street didn’t outsmart the market.
It bullied it.
And when you play with fire this close to the expiry bell—eventually, the regulator rings it on you.
Also Read Nuvama Wealth Drops 6.3% After SEBI Bans Jane Street; Capital Market Index Down 2%
