SEBI Launches Investigation into Jane Street Due to Continued Complaints

The Securities and Exchange Board of India (SEBI) has begun a formal investigation into Jane Street’s trading practices, despite its own surveillance department recommending otherwise, as per the Reuters report. The step was taken after SEBI continued receiving complaints from market participants about possible manipulation in the stock and bond markets.

Earlier Review Questioned

The regulator was not satisfied with the findings of an internal enquiry completed on December 11, 2024. Officials felt the data used in that review was inadequate. A formal probe was ordered towards the end of December 2024, giving SEBI authority to collect information from Jane Street’s custodian bank and domestic trading partners.

Penalty and Market Bar

On July 4, 2025, SEBI barred Jane Street from trading in India and imposed a penalty of $567 million. The amount has been deposited, but the firm has not resumed trading. According to SEBI’s order, Indian exchanges had also warned the firm in February 2025 not to take large positions on derivatives expiry days, when price volatility tends to increase.

Trading Activity Under Scrutiny

As per news reports, Jane Street’s trades on May 15, 2025, drew attention when the firm earned about ₹3.7 billion ($42.28 million) in a single day. Following this, SEBI officials completed their review in June 2025 and issued the July order. A fresh team has been tasked with examining a larger pool of detailed trading data compared to the earlier enquiry.

Appeal Filed

Last week, Jane Street filed an appeal with the Securities Appellate Tribunal (SAT). The firm has asked for access to the documents and complaints that led to the regulator’s decision to escalate the probe. The company also questioned why SEBI went against the advice of its surveillance department. The case will be heard on Monday.

Read more: Jane Street's Plea Against SEBI Postponed to September 9 by SAT!

Conclusion

The outcome of the Tribunal hearing will determine the next steps in SEBI’s probe. For now, the investigation continues with a wider scope and a longer timeline of Jane Street’s trades under review.

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