SEBI bans Jane Street ~ Fun facts from the Jane Street Saga

General
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  • Made 36.5k crore in 2.5 years
  • Made nearly 50% of it in Bank Nifty options ~ 17.3k crores
  • From the top 30 profit-ranked days, 19 were expiry days
  • Only used 2 strategies mainly for making this money
  • "Intraday Index Manipulation” Strategy (15 out of 18 times) ~ Buy stocks, buy cheap puts/sell costly calls and reverse the positions.
  • “Extended Marking the Close” Strategy (3 out of 18 times) ~ Buy options throughout the day at dead cheap prices and make a move in the last hour and closing at big gains at the end.
  • SEBI asks to pay 4843 crores/- only
  • Walks out with a 32k crore gain in 2 years.
  • Gets banned from Indian Markets

The Jane Street chapter ends. When one thing ends another begins :face_with_raised_eyebrow:

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@nithin what are your thoughts on this whole jane street story? Will this ban lead to reduction in volumes and affect liquidity , eventually hurting exchanges and the ecosystem?

Actually only 10% of what they made will be recovered from them as per SEBI order.

Some are of the view that as there is no front running and just using arbitrage strategies what’s wrong with it.

Are they are fault and should face more charges?

Jane street became a beast within no time

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It will be very difficult to prove they did anything wrong i think . may be the swings will be less from here. Lets see

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They might come back with new entity name from different place :see_no_evil:

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Screenshot from 2025-07-04 11-24-11
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Jane Street Shut shop but pain is visible in Angel one, BSE and other capital market stocks lol

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This kind of manipulation is easy to catch and happened almost every weekly expiry. traders/brokers/news channels have been cautioned about such manipulative activity is going on for years, but last corrupt SEBI chief ignored it and punished retail traders with new regulations instead, maybe she received some kickbacks on her foreign accounts.

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