Rahul Gandhi Slams SEBI and Modi Government Over Jane Street Market Manipulation Scandal
Leader of the Opposition in the Lok Sabha, Rahul Gandhi, launched a sharp attack on both the Securities and Exchange Board of India (SEBI) and the Modi government on Monday, accusing them of turning a blind eye to serious allegations of market manipulation by the prominent global trading firm Jane Street.
The New York-based hedge fund has been found guilty by SEBI of engaging in manipulative trading practices, which led to significant distortions in the Indian financial markets over the past two years.
According to SEBI’s recent findings, Jane Street exploited loopholes in the cash, futures, and options (F&O) segments of the Indian stock market simultaneously, enabling the firm to make unprecedented profits.
The regulator revealed that during the investigation period between January 2023 and May 2025, Jane Street earned an astounding Rs 36,671 crore in net profits. Of this, SEBI has already impounded over Rs 4,843 crore and has barred the firm from further participation in the Indian securities market for the time being.
Rahul Gandhi, reacting strongly to the development, took to the social media platform X (formerly Twitter) and posted a scathing critique of both SEBI and the central government. Writing in Hindi, he said, “I had clearly stated in 2024 that the F&O market had become a playground for big institutional players. Meanwhile, small investors are continuously being looted.”
Gandhi questioned why SEBI remained silent for so long, despite growing concerns about the disproportionate influence of large hedge funds and institutional investors on the market. He also directly targeted the government, saying, “Why did SEBI remain silent?
Who instructed the Modi government to sit with its eyes shut? And how many more powerful players are continuing to short the market at the cost of retail investors?”
Further intensifying his critique, Gandhi accused the Modi-led government of systematically enriching powerful corporate interests while allowing ordinary retail investors to suffer massive losses.
He asserted, “Once again, it’s clear — the Modi government is working to make the rich even richer, while pushing the middle class and small investors towards financial devastation.”
This is not the first time Rahul Gandhi has flagged concerns over irregularities and imbalances in India’s capital markets. Back in September 2023, he had posted alarming statistics about the rampant rise of speculative trading.
“Uncontrolled F&O trading has grown 45 times in just five years. 90% of small investors have collectively lost Rs 1.8 lakh crore in the last three years,” he had written, urging SEBI to disclose the names of large institutional players profiting at the cost of small investors. His demand then, as now, was for greater transparency and stricter oversight.
Jane Street, a hedge fund established in 2000, is a high-frequency trading firm known for its aggressive strategies and extensive use of quantitative financial models.
The company earned $20.5 billion in revenue in 2024 alone. On its official website, it describes itself as using “sophisticated quantitative analysis and a deep understanding of market mechanics” to improve market efficiency and maintain price stability.
In India, Jane Street operates through four group entities—two registered in India, and two others operating out of Hong Kong and Singapore as foreign institutional investors (FIIs).
Its Indian operations began in December 2020, and the company has since expanded its footprint in Asian markets.
According to SEBI’s investigation, Jane Street’s large-volume trading triggered artificial market optimism, which influenced retail investors to follow suit. This orchestrated activity, SEBI stated, led to a form of manipulation, where the firm profited massively while retail investors bore the losses.
The Opposition, especially the Congress party, has also targeted former SEBI Chairperson Madhabi Puri Buch, raising allegations of corruption and inaction during her tenure.
Critics argue that under her leadership, SEBI failed to act decisively or transparently in curbing institutional misconduct and protecting the interests of small investors.
With the revelations against Jane Street now in the public domain, pressure is mounting on SEBI and the central government to act more swiftly and decisively in future cases.
