In a rare action against a foreign trading company, India has prohibited Jane Street, a leading quantitative trading firm in the world, from its securities market. The move comes after India’s markets watchdog, SEBI, concluded an investigation and determined that Jane Street had gained ‘unlawful gains’. During the crackdown, SEBI also froze $567 million of the U.S.-based company. Jane Street, though, has said it “disputed the findings.
What is Jane Street?
Established in 2000, Jane Street is a force to be reckoned with in the international trading space, with over 3,000 employees working for it in offices in the United States, Europe, and Asia.
The company recorded a revenue of $20.5 billion annually last year and is growing fast in Asia, most specifically by expanding more office space in Hong Kong.
On its website, Jane Street uses “advanced quantitative analysis and a detailed understanding of market mechanics” to ensure price stability. It brags as “a firm of puzzle solvers on and off the clock.”
How Jane Street Works in India
Jane Street ventured into the Indian market when it set up its very first local entity in December 2020. In total, it operates its India business via four group entities—two of which are registered within India and the remaining two in Hong Kong and Singapore, operating as foreign portfolio investors.
The Size of its India Exposure
Between January 2023 and March 2025, these four entities collectively earned $5 billion in profits by trading equity options in India, as highlighted in SEBI’s order. Jane Street’s substantial role in India first drew widespread attention last year, when it filed a lawsuit in the U.S. against Millennium Management.
The firm accused its rival of misappropriating a valuable proprietary trading strategy. During court proceedings, it emerged that this strategy centered on Indian options and had delivered $1 billion in profits for Jane Street in 2023. The dispute was settled in December.
SEBI’s Allegations and India’s Tough Stance
SEBI argues that Jane Street cornered the market by first aggressively buying banking stocks and futures, which temporarily boosted the banking index. The company subsequently sold significant quantities of the same securities. SEBI argues that such activity pushed retail investors to buy in and thus skewed the market.