The Daily Brief Inside SEBI’s crackdown on Jane Street
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Jul 7, 2025 Dive into the intriguing world of finance as regulators temporarily ban hedge fund Jane Street over market manipulation in India's index options. Discover the complex trading tactics that stirred the pot. Plus, explore India's strategic push for energy security through new oil storage and diversification of resources, including increased imports from Russia. Learn how the nation is adapting to fluctuating oil prices and investing in renewable energy advancements. It's a whirlwind of market moves and energy strategies!
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Jane Street's Market Manipulation Scheme
- Jane Street manipulated Indian index options by buying stocks to push indices up, then betting on indices falling via options.
- SEBI found this coordinated strategy led to huge profits and declared it market manipulation.
Intraday Index Manipulation Details
- On Jan 17, 2024, Jane Street pushed Bank Nifty stocks prices up then dumped them, causing index to drop sharply.
- This move made their put options extremely profitable, earning 734 crores in one day.
Impact of Jane Street's Trading Volume
- Jane Street's aggressive trades accounted for up to 25% of volumes, moving market prices to profit from options.
- They created market moves to match their bets, which SEBI viewed as illegal manipulation.