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After investigating manipulation in BANKNIFTY index by Jane Street, markets regulator SEBI will soon examine other indices for signs of manipulative trading by the US-based global proprietary trading firm, sources said.
“Investigations into other expiry days, other indices (including across exchanges), and other potential patterns will need to continue,” said sources who preferred anonymity. Sebi on Thursday ordered the impounding of Rs 4,843.57 crore in alleged unlawful gains made by Jane Street. It has also restrained the firm from accessing the securities market.
This interim order is not a show cause notice, and it clearly indicates that investigations into Jane Street will continue, sources in the SEBI said.
The interim order has only looked at the 18 major days of prima facie BANKNIFTY index manipulation on expiry day during the examination period (January 2023 to March 2025), and three days of NIFTY index manipulation on expiry day during May 2025.
They said the investigation will take some time to complete as the scope is quite large.
Sources said that SEBI’s enforcement action on Jane Street is not likely to have a major impact on the market. “In any case, delta-based (future equivalent) limits are now in place in index options, to curtail excessive risk taking without impacting regular participants,” sources said.
In May this year, SEBI had delta-based limits in order to enhance trading convenience and strengthen risk monitoring in the equity derivatives segment.
SEBI will continue to monitor Indian futures & options (F&O) markets from the perspective of ensuring investor protection, market stability, and support for sustained capital formation. “In the long run, the growth in market confidence, and a free and fair market, should aid responsible investing and capital formation,” sources said.
