Zerodha CEO Nithin Kamath Praises SEBI For Chasing Jane Street
Zerodha CEO Nithin Kamath Praises SEBI For Chasing Jane Street
The market regulator took stock of the situation after repeated warnings to the American company
Nithin Kamath, the founder, and CEO of stock brokerage firm Zerodha has applauded the Securities and Exchange Board of India (SEBI) for ‘going after’ Jane Street, a US-based investment firm accused of index manipulation.
In its 105-page interim order, the market regulator has sought to recover Rs 4,843.57 crore, one of the highest-ever illegal gains.
It targeted four key entities JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd under the Jane Street Group umbrella:
Kamath posted on X, "You've got to hand it to SEBI for going after Jane Street. If the allegations are true, it's blatant market manipulation.”
He added that the shocking part was that they continued even after receiving warnings from the exchanges. “Maybe this is what happens when you're used to the lenient U.S. regulatory regime. Think about the structure of U.S. markets: dark pools, payment for order flow, and other loopholes that allow hedge funds to make billions off retail investors. None of these practices would be allowed in India, thanks to our regulators.”
Meanwhile, the market regulator observed that the US-based firm used a profit maximising scheme to manipulate the market and booked substantial profits in index options. It incurred meagre losses in the cash and futures segments.
The matter came to light in April 2024, when the media pointed out the legal disputes involving Jane Street's proprietary strategies in Indian markets.
SEBI’s order stated that despite caution letters to refrain from certain trading behaviours from the National Stock Exchange (NSE) in February 2025, the Jane Street Group entities continued to deploy the same high-risk and market-distorting strategies.
Citing the gravity of violations and ongoing disregard for regulatory warnings, the regulator decided on urgent intervention to protect market integrity and investor interest.
