India’s stock market regulatory has banned the American firm from the stock market and ordered to seize assets worth ₹ 4843 crore. In an interim order on Thursday, July 3, Jen Street Group and its related institutions – JSI Investment Private Limited, JSI2 Investment Private Limited, Jane Street Singapore Private Limited and Jen Street Asia Trading Limited have also stopped entry in the equity market.
SEBI said that it is important for maintaining overall belief in the ecosystem and safety of investors. According to SEBI’s interim order, these institutions have been banned from direct purchase, sale or other ways.
Order to seize assets worth Rs 4,843 crore
The order further states that illegal assets worth Rs 4,843 crore allegedly earned by JS Group’s institutions will be seized. In order to submit this amount, a Scheduled Commercial Bank in India has been instructed to open an Eskro account. Without the permission of SEBI, money cannot be withdrawn from these accounts.
SEBI released guidelines
The depository has been ordered to decide that no debit should be made without the prior permission of SEBI. SEBI said that banks, custodians and deposits are instructed to decide that all the guidelines be strictly followed. In his order, SEBI asked the institutions to close his contact within the next three months or finish it. These institutions will not settle or transfer any of their property in India until the amount of illegal profit is deposited in the Eskro account without the prior permission of SEBI.
What a big firm is JS Group?
The Gen Street Group LLC is a global trading firm that employs more than 3,000 employees in five places in the US, Europe and Asia, trading at more than 200 places in 45 countries. It uses algorithms to identify trading opportunities in the market.
What was this firm doing?
April 2024: SEBI investigated on the basis of media reports, referring to the legal dispute related to the Jane Street Group, alleging misuse of their ownership business strategies in the Indian markets.
July 23, 2024: The NSE was asked to check the trading activity of JS Group to find out any market misuse.
August 2024: SEBI interacted with JS Group on August 20 and JS Group gave information about its trades on 30 August.
November 13, 2024: NSE investigation report was presented on JS Group Trading Activity.
December 2024: SEBI saw disturbances on the day of weekly index option expiry. SEBI also found that some institutions were continuously doing so, which was a big residence for the rest of the traders.
4 February, 2025: Officials came to know that JS Group is trading against the rules of SEBI.
6 February, 2025: According to SEBI’s instructions, the NSE issued a warning letter to Jane Street Singapore Private Limited and its respective institutions to ensure that the JS group avoided adopting such trading patterns that were cheated and manipulated.
February 2025: JS Group sent its answers on the warning letter on 6 February and 21 February 2025.
May 15, 2025: The JS Group was seen manipulating the index options with a very large cash, ignoring the warning letter issued by the NSE. After which SEBI has taken action on this.
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