Fri Jul 18 05:44:18 UTC 2025: Here’s a summarized news article based on the provided text:

**India Investigates Jane Street for Price Manipulation and Tax Evasion; Investor Protection Concerns Rise**

**MUMBAI** – Indian authorities are intensifying their scrutiny of U.S. trading giant Jane Street Group, launching probes into potential tax evasion in addition to existing allegations of price manipulation in the Bombay Stock Exchange’s Sensex. This follows a Securities and Exchange Board of India (SEBI) order seizing ₹48.43 billion ($570 million) and banning four Jane Street-related entities from the market for allegedly manipulating prices in the National Stock Exchange (NSE).

SEBI’s order has caused turmoil in Indian markets, triggering debate about regulator surveillance and investor protection. Trading volumes in India’s weekly equity index options have dropped sharply since the ban. The accusations stem from claims that Jane Street exploited discrepancies between cash market and options prices, harming retail investors in the process.

The investigation was fueled by a whistleblower and a New York court case where Jane Street accused a rival of stealing its trading algorithms. SEBI alleges Jane Street manipulated prices by taking large positions in stocks and index options, then reversing trades near closing time to generate profits in the options segment.

Jane Street disputes the findings and has hired legal representation. While the company has deposited the disputed funds, experts estimate the investigation could take up to two years. Concerns are rising about the potential impact on retail investors, who constitute a significant portion of the Indian options market and may have incurred losses due to the alleged manipulation.

Experts suggest SEBI needs to strengthen its surveillance and potentially differentiate products based on customer segments to protect retail investors. The case raises critical questions about the balance between market growth, regulatory oversight, and investor protection in India’s rapidly expanding options market.

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