In July 2025, the Securities and Exchange Board of India (Sebi) shook the financial markets by passing an interim order against Jane Street Group, a well-known global quantitative trading firm. Sebi accused the firm and its affiliates of manipulating Indian stock index levels through a series of strategic trades designed to benefit their derivatives positions.

At the heart of the controversy is Jane Street’s aggressive trading in the derivatives (futures) segment, where the firm executed trades designed not just to profit, but to sway the market itself. Here's how.

Following its ₹4,843 crore order against Jane Street Group for alleged index manipulation, Sebi Chairman Tuhin Kanta Pandey issued a stern warning that market misconduct — from domestic or foreign entities — will face zero tolerance.