Jane Street Scam: SEBI Exposes Major Trading Manipulation in Indian Markets
The Indian stock market witnessed a shocking revelation in July 2025 as SEBI (Securities and Exchange Board of India) cracked down on global trading giant Jane Street. Dubbed the “Jane Street Scam,” the firm has been accused of manipulating the Bank Nifty and Nifty 50 index options to gain unlawful profits worth thousands of crores.
Between January 2023 and March 2025, Jane Street allegedly used high-frequency trading strategies to influence expiry-day market movements. The firm reportedly bought large-cap index stocks in the morning to artificially push prices higher and then shorted options simultaneously. This tactic allowed them to earn huge profits by offloading stocks later in the day, once the options value increased.
SEBI has banned Jane Street from Indian markets and frozen assets worth ₹4,843 crore. The scale of the scam is massive, with estimated profits of around ₹36,500 crore during the investigation period. The real shocker? Most of these profits came at the cost of retail traders, who suffered heavy losses on expiry days.
This Jane Street scam has sent ripples through the Indian trading ecosystem, raising serious questions about expiry-day volatility, algorithmic trading misuse, and regulatory loopholes. SEBI is now strengthening its surveillance and expiry regulations to avoid similar incidents in the future.
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