Make $1 billion loss in stock futures to earn $5 billion profit in options: Sebi exposes Jane Street's Baazigar strategy
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"Kabhi kabhi kuch jeetne ke liye kuch haarna bhi padta hai. Aur haar kar jeetne wale ko baazigar kehte hain! " That isn't just Shah Rukh Khan's immortal dialogue from the Bollywood thriller ‘Baazigar’, but also American hedge firm Jane Street's trick to make money in the Indian stock market. After a year-long investigation into how Jane Street manipulated Indian markets to amass huge profits, markets regulator Sebi found that the firm made profits of Rs 43,289.33 crore (roughly $5 billion) in index and stock options, while deliberately losing a billion dollars - Rs 7,208 crore in stock futures, Rs 191 crore in index futures, and Rs 288 crore in cash equities trading. The net result: Jane Street made a total profit of more than Rs 35,500 crore across all segments during the examination period from January 2023 to March 2025. Sebi’s investigation revealed the staggering scale of Jane Street's operations and the cal...