Angel One, Nuvama Slip As SEBI Bars Jane Street From Indian Markets Over Index Options Trades

Capital market stocks witnessed heavy selling pressure on Friday after the Securities and Exchange Board of India (SEBI) barred entities of Jane Street Group from engaging in the Indian securities market. 

This action comes in response to SEBI's allegations of market manipulation (especially in the Bank Nifty index) against the US firm, along with the issuance of an interim order to seize over ₹4,840 crore in alleged illegal gains from Jane Street. 

As per SEBI's directive, Jane Street reportedly generated ₹43,289 crore in profits from trading index options on Indian exchanges between January 1, 2023, and March 31, 2025.

Angel One shares fell 6%, Nuvama fell 5%, while BSE, IIFL Capital, and CDSL shares fell between 4% to 2% on Friday.

SEBI’s investigation found that Jane Street used aggressive options positions and influenced prices in the underlying cash and futures markets, particularly during weekly index option expiries, to profit from index manipulation.

Here are the key highlights of SEBI’s interim order: 

Market Access Ban: Jane Street and its associated entities are barred from purchasing, selling, or otherwise transacting in securities, either directly or indirectly, in India until further notice.

Escrow Deposit Needed: The specified sum of ₹4,843 crore must be collectively and individually deposited by the entities into an escrow account, which will be subject to SEBI’s lien and cannot be accessed without regulatory consent.

Banking Restrictions: Banks, custodians, and depository institutions have been directed to limit all debit transactions from the accounts of Jane Street entities, except for those required to comply with the SEBI’s order. 

Mandatory Position Closure: Jane Street must close or square off any open positions within three months or at contract expiry, whichever is earlier.

Asset Disposal Restrictions: The entities are not permitted to dispose of or alienate any assets or properties in India until the impounded amount is credited to the escrow account, except with the prior permission of SEBI.

Regulatory Monitoring: SEBI will continue to monitor Jane Street’s activities and positions until the investigation is complete.

Meanwhile, Jane Street has disputed the findings of the SEBI interim order and stated its intention to further engage with the regulator.

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