Sebi bans Jane Avenue entities for alleged expiry-day index manipulation

Markets regulator Sebi has barred US-based buying and selling agency Jane Avenue from the securities markets and directed the corporate to disgorge illegal good points of ₹4,843.57 crore for allegedly manipulating index ranges on expiry days to achieve huge income in index choices.

JSI Investments, JSI2 Investments Pvt Ltd, Jane Avenue Singapore Pte Ltd, and Jane Avenue Asia Buying and selling of Jane Avenue Group (JS Group) have been prohibited from the markets.

In line with an interim order handed by Sebi on Thursday, (July 3, 2025) JS Group entities remodeled ₹43,289 crore in income from index choices on NSE from January 1, 2023 to March 31, 2025 throughout all product classes and segments of NSE.

Additionally, the entities have been directed to stop and desist from straight or not directly partaking in any fraudulent, manipulative or unfair commerce follow or enterprise any exercise, both straight or not directly, which may be in breach of norms.

Sebi discovered the manipulative buying and selling patterns of JS Group early this 12 months. NSE as a primary line regulator clearly and explicitly cautioned the JS Group to desist from taking over giant dangers within the index choices markets, and to desist from enterprise buying and selling patterns that raised issues of manipulative behaviour.

In flip, JS Group themselves represented in February 2025 to NSE of their dedication to stick to all rules, the regulator mentioned.

Sebi additionally famous that JS Group once more resorted to enterprise prima facie manipulative ‘prolonged marking the shut’ buying and selling patterns of huge and aggressive intervention in index and constituent markets in direction of the expiry day closing, in order to affect and manipulate the index to their unlawful benefit in Might 2025, regardless of a warning letter in February and its personal declarations to the NSE.

“Such egregious behaviour, in clear disregard/ defiance of the express advisory issued to them by NSE in February 2025, amply demonstrates that in contrast to the overwhelming majority of Overseas Portfolio Buyers and different market members, JS Group shouldn’t be a superb religion actor that may be, or deserves to be, trusted.

“Within the face of such a robust prima facie case that permitting the JS Group to proceed as earlier than might severely compromise investor safety on a rare scale, Sebi has an obligation to straight intervene,” Sebi’s entire time member Ananth Narayan G mentioned within the order.

Accordingly, Sebi directed the JS Group to disgorge illegal good points value ₹4,843.57 crore.