Question about Jane Street’s trading license being reinstated Isn’t this against the spirit of fair markets?

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Hey everyone,
I saw a substack post by Zerodha about Jane Street getting licensed again to trade in India. I’ve been trying to wrap my head around this, and I have a few questions especially from the perspective of a regular retail investor.

From what I understand, Jane Street was technically not breaking any laws, but they did exploit a loophole in the system specifically, one that let them manipulate a particular stock/index in a way that most people would consider unfair or unethical. It wasn’t illegal per se, but it felt very much against the spirit of transparent and fair markets.

Here’s where I’m confused:
If a normal retail trader were to do something remotely close to that maybe not illegal, but clearly manipulative would we be given a second chance so easily? Most of us wouldn’t even get a hearing. But Jane Street not only walked away with significant gains, they’re now back…

Also, if SEBI or BSE were slow to fix the loophole that made this manipulation possible, doesn’t that make it worse? Jane Street acted in a gray area, but regulators took their time to address it, and meanwhile, the market integrity suffered.
So why was their license reinstated? Is this a case of different rules for different players?

Genuinely curious to hear thoughts maybe I’m missing something.

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Its not a clean slate. Once the interim order penalty amount is deposited, JS has been allowed to trade, and asked to refrain from similar price distortion activities. The investigation is ongoing.

Sebi has likely also passed on information to IT dept, for alleged tax evasion by JS, which looks like exploitation of another loophole :face_with_raised_eyebrow:

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Yes, I saw that tax evasion issue, but still giving them a license, won’t that affect the mindset of a common trader? Does BSE rectify its mistake? And technically, it’s not possible either

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