Jane Street can't get away in India thanks to SEBI: Nithin Kamath

Hans India

16 hours ago

New Delhi: Zerodha co-founder and CEO Nithin Kamath on Friday praised the Securities and Exchange Board of India (SEBI) for taking strong action against US-based trading giant Jane Street, saying that India's robust regulatory framework does not allow market practices that are common in the West.
In a post on social media platform X, Kamath said: "None of these practices would be allowed in India, thanks to our regulators", referring to US market structures like dark pools and payment for order flow -- mechanisms often criticised for favouring hedge funds at the expense of retail investors.
Kamath's comments came in the wake of SEBI's interim order accusing Jane Street and its group entities of manipulating the Bank Nifty index using complex intra-day strategies.
The regulator found that the firm booked massive profits of over Rs 43,289 crore between January 2023 and March 2025, largely through options trades, by artificially inflating and then dragging down the index -- especially on expiry days.
Kamath noted the severity of the alleged manipulation, saying: "You've got to hand it to SEBI for going after Jane Street. If the allegations are true, it's blatant market manipulation."
He added that the firm's continued actions even after alerts from the exchanges point to how accustomed some players are to the lenient oversight in other jurisdictions.
However, Kamath also raised concerns about the potential downside of the action. He pointed out that proprietary trading firms like Jane Street contribute nearly 50 per cent of India's options trading volumes.
If they decide to pull back in light of SEBI's crackdown, retail participation -- which makes up about 35 per cent -- could also take a hit.
"This could be bad news for both exchanges and brokers," Kamath contended.
He further remarked that the next few days would be crucial in understanding how dependent the Indian market is on large prop trading firms.
'F&O volumes might reveal just how reliant we are on these prop giants,' he added.