A financial giant accused of market manipulation on the Indian stock exchange

Leading quantitative trading firm Jane Street finds itself at the epicenter of a major scandal after the Indian regulatory commission accused it of systematic market manipulation. The specialized company, based in New York, is credited with over 3,000 employees and significant presence in international trading.

According to the official statement from the Securities and Exchange Board of India (Sebi), Jane Street has conducted a series of suspicious transactions aimed at artificially influencing market prices. The specific focus of the investigation is the Bank Nifty index, which tracks the performance of 12 leading Indian banks.

The mechanism of the alleged manipulation involves parallel actions in two market segments - the cash and derivatives markets. Experts claim that the company was buying large quantities of stocks in the morning, artificially inflating their prices, and then selling them off at the end of the day, causing an index crash.

Financial analysts describe this strategy as far beyond the scope of legal arbitrage. Independent experts like Deepak Shenoy emphasize that the operations were precisely planned to maximize profit at the expense of small investors.

The scale of damages is impressive - according to regulatory data, Jane Street realized nearly $4.3 billion in profit in less than two years. Simultaneously, around 10 million small investors lost over 1.05 trillion rupees in the past financial year.

The company categorically denies the accusations, describing them as unfounded. In an official letter to its employees, management stated that it is "beyond disappointment" with the regulator's decision and intends to challenge it through legal channels.

Sebi took unprecedented measures, temporarily banning Jane Street from the Indian market and requiring a deposit of over $560 million in a security account. If the accusations are confirmed, the company could be sanctioned with a fine up to three times the initially blocked amount.

The case raises serious questions about market supervision effectiveness and protection of small investors' interests. Experts like Mayank Bansal insist on stricter and timely regulatory mechanisms capable of preventing such market manipulations.

At the moment, the regulatory commission is reviewing Jane Street's request to lift the temporary ban, and the outcome of the case could have significant consequences for the international trading community and future investment practices.