Who Is Jane Street & What Were They Doing in India?
Jane Street, a US-based high-frequency trading powerhouse, was making massive profits by betting on Bank NIFTY & NIFTY 50 — but not in the usual way.
The Morning Pump – Creating the Illusion
On option expiry days, Jane Street bought stocks worth ₹4,000+ crore in the morning, artificially pushing the index up and fooling small traders.
The Trap and the Crash
After setting a bullish trap, they switched — selling heavily and crashing the market. Their bearish option trades paid off big.
“Marking the Close” Trick Explained
In the final minutes, Jane Street hammered the index with massive short positions.
This tactic distorted the closing price, maximizing their options profits.
SEBI Strikes Back
SEBI investigated 18 such expiry-day tricks. Result: Jane Street and 4 others were banned, ₹4,840 crore frozen, and accounts locked.
Why It Matters to Retail Traders
Millions of small investors lost money. Trust in the market was shaken.
Even broker stocks fell as Jane Street’s trading volumes vanished.