Amit Shah Praises SEBI’s Action Against Jane Street, Reaffirms Government’s Stand on Transparent and Fair Markets
Published on: July 04, 2025
By: [BTNI]
Location: New Delhi, India
Union Home Minister Amit Shah has lauded the Securities and Exchange Board of India (SEBI) for its decisive action against American trading firm Jane Street Group, which was banned from operating in Indian markets due to allegations of market manipulation. In a post on X, Shah emphasized the government’s commitment to ensuring transparency and fairness in India’s financial markets, calling SEBI’s move a “step towards protecting investors and maintaining market integrity.”
SEBI’s Crackdown on Jane StreetSEBI recently imposed a ban on Jane Street and its affiliated entities, including JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore PTE Ltd, and Jane Street Asia Trading Ltd, accusing them of manipulating the Indian derivatives market. The regulator alleged that the firm employed strategies such as ‘pump-and-dump’ and ‘marking the close’ to artificially influence the prices of Bank Nifty and Nifty 50 indices, particularly on expiry days. These actions reportedly caused significant losses to retail investors while generating substantial profits for the firm.
According to SEBI’s 105-page interim order, Jane Street amassed a total profit of ₹36,502 crore between January 2023 and March 2025, with ₹43,289 crore earned through index options alone. However, the firm also incurred losses of ₹7,687 crore in stock futures, index futures, and cash segments. SEBI has ordered Jane Street to deposit ₹4,843.57 crore, deemed as illicit gains, into an escrow account and has barred the firm from further trading until compliance is met.
Amit Shah’s StatementIn his X post, Shah stated, “The Modi government is committed to fostering a transparent and robust financial ecosystem. SEBI’s action against Jane Street for alleged market manipulation reflects our resolve to safeguard the interests of small investors and ensure a level playing field. We will continue to strengthen India’s markets to support its journey towards economic leadership.”
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Shah’s remarks underscore the government’s focus on investor protection and align with SEBI’s ongoing efforts to curb malpractices in India’s rapidly growing derivatives market, which is currently the largest globally in terms of contract volume.
Market ImplicationsSEBI’s action has sparked discussions within the financial community, with experts praising the regulator’s vigilance. Zerodha co-founder Nithin Kamath commented on X, “If these allegations are true, it’s blatant market manipulation. Kudos to SEBI for taking swift action to protect retail investors.” The move is seen as a signal of stricter oversight of high-frequency trading and complex strategies employed by foreign institutional investors.
Jane Street, in response, has denied the allegations and stated its intent to engage with SEBI to address the concerns. The firm has 21 days to respond to the interim order or appeal to the Securities Appellate Tribunal.
Looking AheadSEBI’s directive mandates that Jane Street deposit the alleged illicit gains into an escrow account, and banks have been instructed to freeze transactions from the firm’s accounts. The ban will remain in effect until the investigation is complete. However, SEBI has indicated that Jane Street may be allowed to take new positions if it complies with the order and ceases the alleged manipulative strategies.
This development highlights India’s commitment to maintaining the integrity of its financial markets as it continues to attract global investment. The case is expected to set a precedent for how regulators handle sophisticated trading practices in one of the world’s most dynamic markets.
