SEBI Investigates Jane Street's $4.3 Billion Nifty Bank Strategy

Jane Street’s legal battle with SEBI over alleged index manipulation in Indian options markets has led to a freeze of ₹48.4 billion in profits. SEBI accuses Jane Street of artificially inflating the Bank Nifty index by buying illiquid stocks and selling option positions. Jane Street defends its trades as basic index arbitrage, arguing it improved market efficiency. The outcome of the probe will determine the future of quant firms in Indian markets and could lead to structural reforms. Critics worry about the impact on legitimate arbitrageurs and market liquidity if SEBI imposes stricter rules. The case highlights the complexities of trading and regulation in emerging markets.

Read more at Quiver Quantitative: How Jane Street’s $4.3 Billion Nifty Bank Strategy Triggered SEBI Ban