July 27, 2025
Bloomberg recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing how India’s stock market regulator, SEBI, is accusing the global trading firm Jane Street of market manipulation in the country’s booming equity derivatives market.
The investigation is being led by SEBI board member and former trader Ananth Narayan, who alleges that Jane Street earned over $500 million in improper profits in under two years, and more than $4 billion total during that period. Regulators claim the firm used complex strategies to exploit retail investors, many of whom already face losses in derivatives trading. While Jane Street denies the accusations and is contesting the case, it has been ordered to place the disputed profits into escrow.
“India has to protect the integrity of its securities market, which is key to fueling the growth of a rapidly expanding economy. The perception of market manipulation and that an aggressive trading firm such as Jane Street could go unpunished is a top concern for regulators,” Williams adds.
This high-profile case reflects SEBI’s broader effort to rein in risky trading practices and safeguard individual investors, signaling potential for more investigations and regulatory reforms ahead.
