India’s markets watchdog, SEBI, has banned U.S.-based trading firm Jane Street and seized approximately ₹48,000 crore ($567 million), alleging manipulation of the Bank Nifty index via coordinated cash, futures, and options trading . Jane Street has vowed to challenge SEBI’s claims, labeling them “inflammatory” and stating it offered full cooperation .
The impact has been substantial: Indian retail investors lost around ₹1.05 lakh crore (~$12.6 billion) in FY25 alone due to troubling derivatives market volatility . In response, SEBI is ramping up surveillance and tightening rules around leverage and broker-customer exposures.
