Sebi probes Jane Street's derivative trades over 3 years: Sources
India's markets regulator is investigating Jane Street's derivatives trades stretching back three years to check if one of the world's largest quant trading firms intended to manipulate the country's benchmark stock indexes, according to two sources with direct knowledge of the matter.
The investigation - the largest such into a global trading firm - follows a series of steps taken by the
Securities and Exchange Board of India
(SEBI) to cool the frenzy in India's derivatives markets.
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning...
Blinkist: Warren Buffett's Reading List
Click Here
Undo
SEBI is investigating Jane Street, Jane Street Singapore Pte and JSI Investments, the firm's India unit, and studying the firms' algorithmic trading strategies in the National Stock Exchange's index of top 50 stocks and its index of banking stocks, one of the sources said.
Play Video
Play
Skip Backward
Skip Forward
Mute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions and subtitles off
, selected
Audio Track
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
"The investigation is to establish whether there was a repeated pattern of taking outsized derivatives positions in index constituents, particularly bank stocks, then trade the index in the physical market to profit from its position," the source said.
While India does not impose any restrictions on traders from taking intraday positions in derivative as well as physical markets, surveillance systems typically signal repeated patterns of taking positions in excess of 10 billion Indian rupees ($116.93 million).
Live Events
A report is being prepared with assistance from the stock exchange, following which the U.S.-based trading firm will be sent a regulatory notice to explain its trades.
The sources declined to be named as the investigations are confidential. Jane Street and SEBI did not respond to several requests for comment.
The investigation stemmed from large profits made by Jane Street on its India derivatives positions - nearly five times the profit made by the second largest trading firm, the second source said.
Known for
high-frequency trading
and its dominance of the exchange traded funds market, Jane Street's net trading revenue for 2024 stood at $20.5 billion globally, according to Bloomberg. As of December 2024, the firm's revenue from India operations stood at 200 billion Indian rupees ($2.34 billion), the second source added.
The firm started its India operations in December 2020.
Complaints from other large institutional firms on Jane Street's trade practices also prompted the investigation, the sources said.
Jane Street last year sued a rival hedge fund, Millennium Management, accusing it of stealing a valuable in-house trading strategy. At a court hearing, it was revealed that the strategy involved India options and had generated $1 billion in profits for Jane Street in 2023. The two firms settled the case in December.
INCREASED SCRUTINY
The investigation has also prompted SEBI to increase monitoring of intraday positions to watch for large concentrated trades in index stocks, the two sources said.
SEBI and stock exchanges are currently drafting a mechanism to do this, said the sources, adding that large positions for consecutive days could prompt investigation.
The thresholds for such investigations are still being finalised.
Exchanges will also be asked to periodically audit algo programs of large trading firms, which are already required to get approval from exchanges before using the programs.
($1 = 85.8370 Indian rupees)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
23 minutes ago
- News18
How Gen Z and AI Are Redefining Astrology in India: The Rise of AstroTech
Last Updated: Gen Z and AI are rewriting the future of astrology in India—making it smarter, more personal, and deeply relevant for today's digital generation. In India, where astrology has long guided personal and societal decisions—from marriage to career to investments—a new era is dawning. A powerful convergence of Gen Z's digital fluency and artificial intelligence is reshaping how astrology is experienced, accessed, and understood. What was once viewed as an esoteric, often static tradition is being transformed into an intelligent, interactive, and emotionally resonant service—available at your fingertips. At the heart of this transformation is Gen Z, a generation that grew up with technology, questions norms, and seeks deeper meaning. 'Gen Z is our fastest-growing user base, growing at a staggering 11% month-over-month," shares Punit Pandey, Founder and CIO of AstroSage AI, one of India's leading AstroTech platforms. 'These users aren't looking for generic sun sign horoscopes—they want personalized, empathetic insights that fit into their fast-paced, emotionally complex lives." For Gen Z, astrology is no longer just about prediction; it's about personal narrative. Queries on AstroSage AI are dominated by themes like career uncertainty, mental health, toxic relationships, and spiritual healing—signs of a generation seeking clarity, not clichés. To meet this demand, AstroSage AI has built a powerful backend where AI-driven astrologers analyze celestial data from over a billion birth charts and real-time user behaviour to offer hyper-personalized, conversational insights. 'These aren't cookie-cutter predictions," Pandey explains, 'They're intuitive responses to deeply personal life moments. On any given day, our AI handles over 500,000 user questions—each one tailored to individual astrological patterns and emotional contexts." Indeed, a new crop of young Indian developers is decoding ancient texts, building tools that use machine learning to match birth charts, and crafting interactive readings with generative AI. What once required visits to traditional astrologers and deciphering Sanskrit mantras can now be done through immersive mobile apps, voice assistants, and even AI avatars. Reinventing the Astrological Experience AstroSage AI has embraced this shift by reimagining the interface of astrology. Long-form horoscopes are still available, but Gen Z prefers something more immediate and immersive. 'We've launched AI avatars with distinct personalities like Krishnamurti for KP astrology and Dr. Raman for classical Vedic," Pandey shares. 'Users can choose the voice that best fits their worldview." With support for 11 Indian languages and several international ones like French, Japanese, and Portuguese, the platform is also taking Indian astrology global. Bindra echoes the potential of such innovation, noting, 'AstroTech has the potential to transform a centuries-old tradition into something truly future-facing, combining cultural continuity with technological innovation in a uniquely Indian way." A Tech-Driven Spiritual Future—With Caution But this rapid evolution isn't without its challenges. Bindra cautions: 'AI still has a propensity to hallucinate, and when dealing with sensitive belief systems like astrology, accuracy and trust become paramount." Issues around data quality in Indic languages, ethical AI behavior, and emotional sensitivity are critical to address. AstroSage AI, which has crossed 65 million app downloads and handles over 1 million daily active users, is tackling these concerns head-on. 'Every AI response is reviewed for accuracy and empathy," says Pandey. 'We've built filters, added disclaimers, and offered direct access to human astrologers. Our goal is guidance—not dependence." What's Next: Proactive Astrology and Predictive AI Looking ahead, the future of AstroTech goes beyond reactive consultations. 'Our next leap is proactive, agentic AI—autonomous avatars that track live astronomical data, user patterns, and even social sentiment to offer preemptive guidance—before a question is even asked," Pandey reveals. This signals a shift not just in how astrology is delivered, but in when and why. Imagine a world where your digital astrologer nudges you before a stressful day at work or suggests introspection before a tough conversation. The AstroTech revolution is more than a trend—it's a new paradigm. What once lived in almanacs and temples is now in your pocket, driven by data, shaped by empathy, and inspired by tradition. As Bindra aptly puts it, 'This evolution isn't about replacing belief systems, but about augmenting them… and perhaps, in the process, creating a global blueprint for how ancient systems and modern intelligence can co-evolve." For India and the world, the stars haven't changed. But how we understand them is being rewritten by a new generation, one swipe at a time. About the Author Swati Chaturvedi Swati Chaturvedi, a seasoned media and journalism aficionado with over 10 years of expertise, is not just a storyteller; she's a weaver of wit and wisdom in the digital landscape. As a key figure in News18 More
Time of India
27 minutes ago
- Time of India
India supplies arms to 92 countries: Defence MoS Sanjay Seth
Shimla: Union minister of state for defence Sanjay Seth said on Tuesday that India has transitioned from an importer to an exporter, with defence exports worth approximately Rs 23,500 crore last year. "We are supplying arms to 92 countries, with a defence export target of Rs 50,000 crore this year and Rs 3 lakh crore by 2029," said Seth during a presser in Shimla. Focusing on the achievements of Prime Minister Narendra Modi-led NDA govt's 11-year tenure, the Union minister stated that India's defence budget for the fiscal year 2025-26 is Rs 2.81 lakh crore, up from approximately Rs 2.53 lakh crore in 2013-14. Previously known as an importing nation, India now produces its own bulletproof jackets and boots, making our forces self-reliant. Seth was accompanied by former chief minister and present leader of the opposition Jairam Thakur, state BJP president Dr Rajeev Bindal, Shimla MP and Air Force veteran Suresh Kashyap. Seth said that India has become the fourth-largest economy in the world and is on the path to becoming the third-largest. "India is confident of achieving the goal of a developed nation by 2047 with Modi's visionary leadership," he added. "When the Ukraine-Russia war began, India safely evacuated 23,000 students, and students from 28 countries left safely under the Indian flag," said Seth. "Under Operation Kaveri , over 3,000 Indians were brought back safely, and after the Pahalgam terrorist attack, it was the first time such a significant military operation was conducted against a nuclear-armed country. Indian armed forces eliminated terrorists in 23 minutes, destroying their 11 air bases," he added. MSID:: 121754401 413 |
First Post
28 minutes ago
- First Post
EVs at Risk: How China's Rare Earth Controls Hit India Vantage with Palki Sharma
EVs at Risk: How China's Rare Earth Controls Hit India | Vantage with Palki Sharma | N18G EVs at Risk: How China's Rare Earth Controls Hit India | Vantage with Palki Sharma | N18G India's electric vehicle industry faces a critical threat. China, the world's top supplier of rare earth magnets, has tightened export controls. These magnets are vital for electric motors. Over 30 Indian shipments are now stuck. Production timelines are at risk, especially for two-wheeler makers. Can India reduce its dependence? What is the government doing to avoid disruption? And how does this supply crunch give China strategic leverage? Palki Sharma explains. See More
