Whalesbook
Filings with the Indian government reveal JSI Investment Pvt. Ltd., a unit of Jane Street Group, posted net trading gains of ₹4,700 crore for the financial year ended March, a near six-fold increase from ₹790 crore in the prior year. This surge translated into an after-tax profit of ₹2,840 crore, up 494 percent.
These robust financial results offer a stark glimpse into Jane Street's extensive trading operations in India, which were abruptly curtailed by the Securities and Exchange Board of India (SEBI) on allegations of market manipulation. The regulator's July 3 interim order accused the firm of manipulating the local stock market, with claims of over $4 billion in profits from trading stocks, futures, and options in just over two years.
Jane Street maintains it disagrees with SEBI's findings and has filed an appeal seeking crucial information for its defense, with a trial scheduled for Monday. The firm's lobbying efforts included meetings with U.S. Treasury, Commerce Department, and White House officials to discuss its India operations.
SEBI is reportedly examining additional strategies, including alleged manipulation of India's main equity index to profit from a 'short straddle' options strategy. Other global trading firms, such as Hudson River Trading LLC and Optiver Holding BV, also reported strong profit growth in India, demonstrating adaptability despite regulatory shifts, with many companies moving away from high-frequency options strategies.
Meanwhile, a separate filing indicated JSI2 Investment, also named in the SEBI order, reported a net trading loss of ₹1.5 billion for the same period. Filings showed Indian units ceased securities and derivatives trading, pending evaluation for resumption.