NEW DELHI: The Congress on Tuesday questioned market regulator Sebi and the government for failing to protect the interest of small investors and check outflow of “illegal profits” made by US algorithm trading firm Jane Street through stock market manipulation.Addressing a press conference here, Congress’ head of social media department Supriya Shrinate said Jane Street, which manipulated the Indian stock market through algorithms and made thousands of crores in illegal profits in the Futures and Options market has caused massive losses to ordinary retail investors, while regulator Sebi remained a silent spectator.“Why was Sebi sleeping for all these 4.5 years when Jane Street was manipulating the direct equity market and the F&O market,” she asked, alleging that instead of protecting small investors, Sebi turned a blind eye to “rampant fraudulent activities”.“Isn’t it true that Jane Street transferred a massive amount out of India? The government and Sebi woke up only when FII outflow numbers skyrocketed. They didn’t wake up to protect small investors but rather when foreign institutional investors withdrew large sums from India,” she alleged.Shrinate asked how much money has Jane Street repatriated in the last four and a half years, as its numbers from 2023 to 2025 are only known.She claimed that Jane Street began operations in 2020 and Securities and Exchange Board of India (Sebi) has admitted that its profits are illegal.“What will you do about the money repatriated to the United States? How will you retrieve it? She alleged that there are countless examples of institutions collapsing under the Modi government and Sebi instead of protecting small investors, turned a blind eye to “fraudulent activities”.“Why did Sebi ignore the red flags, and what were other agencies like the ED, CBI, Income Tax, and others doing?,” the Congress leader asked.“Did the Prime Minister and Home Minister know about this scam and market manipulation? Is it not true that Jane Street’s repatriation of large sums was driving FII outflows, which is why the government woke up,” Shrinate also asked.She also claimed that Leader of Opposition in Lok Sabha Rahul Gandhi has repeatedly warned the government and market regulator Sebi to protect and ring-fence small investors in the volatile and highly risky Futures and Options Market.But his warnings were ignored and today, small investors have lost crores of their hard-earned money while an algo trader has made illegal profit, while the regulator and the government shut their eyes, perhaps deliberately, she alleged.The Congress leader said after years of the scam unfolding, Sebi on July 3, passed a 105-page interim order banning Jane Street Capital and four affiliates from trading in India.Sebi froze Rs 4,844 crore – the alleged unlawful profits – the largest-ever impoundment by Sebi, she claimed, adding that this has been done by analysing only 18 trading days between the period of January 2023 and March 2025.“So the impoundment of 4,844 crore is a fraction of the total Rs 43,289 crores profits Jane Street (USD 5.1 billion) made from derivatives/F&O trading in India just between January 2023-March 2025. What it made before and after is still not even in consideration,” she claimed.Shrinate alleged that these speculators raked in astronomical profits, while Sebi “slept blissfully”.“But the era of the infamous Madhabi Puri Buch will be remembered for her blindfolding the entire system,” she alleged, asking of she was the “mastermind” behind it.The Congress spokesperson alleged that while the American firm “looted” unsuspecting small investors for five continuous years, the Sebi and all other regulatory institutions remained in “deep slumber”.Taking a dig at Prime Minister Narendra Modi and the Home Minister Amit Shah for “being self appointed market gurus, for advising people to invest” in stock markets after the 2024 general elections, she asked why did not they caution the investors.
