#ArbitrageTradingStrategy

Major News & Regulatory Developments

• Jane Street’s India arbitrage controversy: India’s SEBI has accused Jane Street of using index arbitrage—buying bank stocks while shorting derivates like options to manipulate prices for profit. Jane Street disputes this, calling it standard index arbitrage  .

• SEBI froze $567 million of their funds and barred them; Jane Street has since escrowed that amount as it seeks to resume operations .

• This case highlights how arbitrage can blur the line between legitimate pricing efficiency and market manipulation—and suggests firms must tread carefully amid tightening global regulation