100 words insight of jane street scandal 📌

SEBI, India's market regulator, has taken action against U.S. trading firm Jane Street, barring them temporarily from Indian securities markets. Alleged illicit profits totaling ₹4,843 crore (~$567 million) have been frozen by SEBI. The investigation focused on trades conducted between January 2023 and March 2025, revealing the use of repeated "expiry-day" strategies by Jane Street.

The strategies involved aggressively inflating the Bank Nifty index through morning buys in both the cash and futures market, alongside shorting index options. Subsequently, these trades were reversed to capitalize on the decline in options, a practice deemed manipulative by the regulator under PFUTP rules. This activity was found to have a detrimental impact on retail investors, prompting regulatory action.

Despite the allegations, Jane Street has denied any wrongdoing and intends to appeal the decision within a 21-day period. The case underscores the significance of regulatory oversight in maintaining market integrity and protecting the interests of investors.
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