Jane Street Group's revenue from its India operations experienced a downturn in the first half of 2025, preceding a trading ban imposed by the Securities and Exchange Board of India (SEBI). The company, a significant player in the high-frequency trading sector, generated only 3% of its total net trading revenue from India during this period. This amounted to approximately $500 million, a figure significantly lower than the $2.3 billion the firm earned from India in all of 2024. In the previous year, India contributed over 10% to Jane Street's overall revenue.

This decline in revenue occurred amidst increasing scrutiny from Indian regulators, who have accused Jane Street of market manipulation. SEBI alleges that the firm engaged in manipulative transactions involving local options and shares. In an interim order dated July 3, SEBI temporarily barred the New York-based firm from trading in the Indian securities market.

Jane Street has refuted these allegations. The company has filed a case with the Securities Appellate Tribunal (SAT), arguing that SEBI has not provided access to crucial documents necessary to defend itself against the accusations. Jane Street asserts that these documents are essential for rebutting the charges of market manipulation. The SAT is scheduled to hear the case on September 8.

According to SEBI, Jane Street allegedly manipulated the Nifty Bank index by buying constituent stocks in both cash and futures markets to artificially inflate the index. The firm then allegedly unwound these positions while holding large short bets in index options, profiting from the subsequent decline. SEBI's investigation is based on trades made between January 1, 2023, and March 31, 2025. The regulator claims that Jane Street made ₹36,503 crore (approximately $4.3 billion) in net profit from these trades, with ₹4,843 crore (approximately $570 million) considered "unlawful gains".

Jane Street, however, maintains that its trading activities were standard "index arbitrage," a practice used to exploit price discrepancies across markets to enhance liquidity and efficiency. The firm argues that SEBI's findings are "fundamentally mistaken".

Despite the trading ban, which was later lifted after Jane Street deposited ₹4,843 crore into an escrow account, the firm has not resumed trading in index options and remains under adjudication proceedings. These proceedings could extend for six to eight months.

Even with the revenue decline in India, Jane Street achieved a record $10.1 billion in net trading revenue globally in the second quarter of 2025. This figure surpassed the revenue of major Wall Street banks and more than doubled from the previous year. The firm benefited from increased market volatility due to trade war tensions.

The case between Jane Street and SEBI has significant implications for other high-frequency trading firms operating in India. The outcome could affect how foreign market participants are treated in India and raise questions about regulatory transparency.