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Jane Street Group accused of manipulating Nifty index

The Securities and Exchange Board of India (SEBI) has barred four entities of the Jane Street Group from accessing Indian securities markets, alleging fraud and manipulation in the derivatives segment.

In its 105-page interim order, SEBI revealed a sophisticated, expiry-day-centric trading strategy deployed by the US-based proprietary trading firm. The order details how the Jane Street Group manipulated index levels through aggressive buying and selling of key Bank Nifty and Nifty 50 constituent stocks, thereby influencing options pricing to generate substantial profits.

Manipulation Strategy

SEBI's investigation found that on 15 Bank Nifty expiry days, Jane Street first aggressively bought large quantities of constituent stocks and futures, artificially pushing up or supporting the index in the morning. In the second half of the session, the group systematically unwound these positions, selling in large volumes and exerting downward pressure — profiting from options positions aligned with this engineered movement.

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