🧠 Inside the SEBI Interim Order: JSI Investments & JSI2 Investments – A Deep Dive
🏢 Company Snapshot: Jane Street – JSI Investments & JSI2 Investments
🔗 Company Links on Finanvo:
| Feature | JSI Investments Pvt Ltd | JSI2 Investments Pvt Ltd |
|---|---|---|
| CIN | U67100MH2020FTC351153 | U64990MH2024PTC432103 |
| Incorporation Date | December 10, 2020 | March 12, 2024 |
| Registered State | Maharashtra | Maharashtra |
| Parent Company | Jane Street Group LLC (USA) | Wholly owned by JSI Investments Pvt Ltd |
| Status | Active | Active |
⚖️ Why Are These Companies in the News?
On July 5, 2025, SEBI issued a detailed interim order implicating the Jane Street Group — including JSI Investments Pvt Ltd and JSI2 Investments Pvt Ltd — in a case of index manipulation through trading strategies deployed in the Indian derivatives market.
The allegations include:
- Aggressive manipulation of BANKNIFTY index during expiry days
- Execution of a calculated two-patch intraday strategy
- Profiteering from over ₹43,000 crores in index options
- Misleading retail traders by artificially inflating index levels
📈 Breakdown of SEBI’s Allegations
📍 Entities Under Scrutiny:
- JSI Investments Private Ltd (PAN: AAFCJ0285L)
- JSI2 Investments Private Ltd (PAN: AAGCJ5786R)
- Jane Street Singapore Pte. Ltd.
- Jane Street Asia Trading Ltd.
These entities are interconnected subsidiaries of Jane Street Group LLC — a global trading giant with operations in the U.S., Europe, and Asia.
🧩 The Alleged Manipulative Strategy
Patch I (Morning Phase)
- Aggressively bought BANKNIFTY constituent stocks and futures worth ₹4,370+ Cr
- Pushed up index levels artificially
- Simultaneously shorted index via options strategy (long puts, short calls)
Patch II (Afternoon Phase)
- Sold the same stocks aggressively to drop the index
- Booked losses in cash/futures but massive profits in index options
📌 On Jan 17, 2024, alone — Jane Street reportedly earned over ₹734.93 Cr in index options.
💰 Financial Highlights
| Entity | Total Index Options Profit (₹ Cr) |
|---|---|
| Jane Street Singapore Pte Ltd | 31,415.63 |
| Jane Street Asia Trading Ltd | 7,650.34 |
| JSI Investments Pvt Ltd | 4,392.03 |
| JSI2 Investments Pvt Ltd | (168.67) (Loss) |
👉 These figures suggest JSI2 acted as a loss-making conduit, potentially helping spread and allocate trades within the group for risk or regulatory reasons.
🕵️♂️ Regulatory Repercussions
SEBI issued interim directions invoking powers under:
- Section 11(1), 11(4), 11B(1), and 11D of SEBI Act, 1992
Key directives include:
- Caution to refrain from large ‘cash-equivalent’ positions
- Ongoing investigation into manipulative trading behavior
- View towards group-level accountability under PFUTP regulations
🧩 Corporate Structure & Connections
JSI2 Investments is a wholly-owned subsidiary of JSI Investments Pvt Ltd, which in turn is controlled by:
- Jane Street Europe Ltd. (Immediate Holding)
- Jane Street Group LLC (Ultimate Holding, USA)
📘 These linkages were revealed in audited financials and domain usage for trading accounts.
📊 Impact on Retail and Markets
Jane Street’s alleged manipulation distorted expiry-day pricing, misled retail participants, and raised concerns over:
- Index derivative regulations
- Fairness of market settlement mechanisms
- Foreign institutional participation standards
📌 Conclusion on Jane Street Case
The ongoing SEBI probe into JSI Investments Pvt Ltd and JSI2 Investments Pvt Ltd is a landmark investigation into algorithmic and institutional-level trading abuse.
It highlights the importance of transparency, regulatory vigilance, and corporate disclosures in India’s rapidly growing derivatives market.
Stay tuned on Finanvo for real-time updates on this evolving case.