Stories
Jane Street to Argue Bank Nifty Moved Opposite to Alleged Manipulation
- •Jane Street will argue before SAT that Bank Nifty moved opposite to its alleged manipulation strategy in over 90% of trading windows.
- •The firm will rely on findings from 48 of 53 trading windows examined in earlier NSE and SEBI surveillance reviews.
- •Jane Street contends that earlier NSE and SEBI reviews, covering substantially overlapping periods, reached different conclusions.
- •SEBI's July 2025 interim order alleged Jane Street manipulated the Bank Nifty index to benefit derivatives positions, estimating unlawful gains at Rs 4,843.57 crore.
- •The confirmatory order is delayed due to a dispute over Jane Street's request for additional inspection documents from SEBI.
Key Questions Answered
Jane Street plans to argue that the index moved in the opposite direction to its alleged manipulation strategy in over 90 percent of the trading windows examined in earlier NSE and SEBI surveillance reviews. The firm will rely on findings from 48 of 53 trading windows to demonstrate that its equity trading did not influence index prices to benefit its derivatives positions.
SEBI issued an interim order on July 3, 2025, alleging that Jane Street and related entities manipulated the Bank Nifty index through trading in index constituents and futures while taking positions in options. The regulator estimated unlawful gains at Rs 4,843.57 crore and ordered the firm to deposit this amount into an escrow account, which Jane Street fulfilled.
The delay in passing the confirmatory order stems from a procedural dispute over the inspection of documents. Jane Street has sought access to additional records and material linked to SEBI's investigation, whereas SEBI maintains it has already disclosed all documents relied upon for its interim order.
