The Securities and Exchange Board of India (SEBI) says quant-trading powerhouse Jane Street earned approximately Rs 43,289 crore exclusively from trading index options (Bank Nifty and Nifty 50) between January 1, 2023, and March 31, 2025
That figure is part of a broader Rs 36,500 crore net profit from Indian markets during the same period
📊 How Did They Do It?
- Jane Street allegedly used aggressive intraday strategies on 18 index-expiry days, pushing up the index in the morning and heavily shorting options to realize big profits reuters
- On key dates like January 17, 2024, a single-day profit of Rs 735 crore was made by inflating Bank Nifty in the morning and unwinding positions later
- Over those 18 days, the firm averaged Rs 2,405 crore profit per expiry from index options
🛡️ SEBI’s Reaction
- SEBI froze Rs 4,840 crore in alleged illegal gains
- It imposed a sweeping interim ban on Jane Street and related entities from trading in Indian securities until the investigation concludes
📉 Market Impact & Outlook
- This aggressive profit-taking has raised alarms about market manipulation, with SEBI saying it misled retail traders and distorted price discovery
- Despite the freeze, Jane Street disputes the findings and plans to contest SEBI’s order within 21 days
- SEBI’s move signals a firm stance on algorithmic trading oversight in India’s booming—but increasingly scrutinized—derivatives market.
✅ Bottom Line
Between 2023 and early 2025, Jane Street reportedly earned Rs 43,289 crore from index options alone—a revelation that triggered SEBI’s most stringent action against a foreign firm, including an interim ban and multi-thousand-crore asset freeze. The final outcome will hinge on regulatory review and potential appeal.
