India’s financial watchdog is digging deeper. What started as a trading ban on U.S.-based market maker Jane Street has now escalated into a sweeping investigation spanning multiple Indian exchanges and benchmark indices, according to a person familiar with the matter.
On Friday, the Securities and Exchange Board of India (SEBI) blocked Jane Street from participating in any securities trading within the country and froze $567 of the firm’s capital — a symbolic but sharp move as scrutiny over alleged market manipulation intensifies.
This isn’t just about one player. The probe, initially confined to specific transactions, is now ballooning to examine broader patterns of trading behavior, data footprints, and possible regulatory blind spots that may have been exploited across India’s vast financial ecosystem.
Requests for comment from both SEBI and Jane Street have so far gone unanswered.
As the investigation widens, markets are bracing for potential aftershocks — especially as regulators signal a willingness to flex their enforcement muscle against global firms operating on Indian turf.
