By Jayshree P Upadhyay

MUMBAI, July 30 (Reuters) - India's markets regulator

has asked stock exchanges to share detailed data of trading by

U.S. brokerage Jane Street across all indexes from January 2023

to May 2025, two sources with direct knowledge of the matter

told Reuters, formally widening its probe into alleged market

manipulation.

The Securities and Exchange Board of India (SEBI) had on

July 4 barred Jane Street from trading in Indian markets,

alleging the firm manipulated stock indexes through its

derivatives positions.

Jane Street has since deposited $567 million in an escrow

account, representing what SEBI termed "unlawful gains," in a

bid to resume trading while reserving its legal rights. The firm

has denied the allegations and called the trades basic

arbitrage.

The regulator's latest request, sent to exchanges on July

11, seeks mark-to-market profits, long and short positions of

Jane Street group entities, and data for all expiry days of

derivatives contracts, the sources said, declining to be named

as the discussions are private.

BSE - formerly the Bombay Stock Exchange - has been asked to

share data related to its indexes of top 30 stocks and banking

stocks, while National Stock Exchange of India (NSE) has been

asked for information on indexes tracking the top 50 stocks and

financial services firms, they added.

A BSE spokesperson declined to comment. SEBI, NSE, and Jane

Street did not immediately respond to Reuters' queries.

"More data is being analysed as part of a planned widening

of investigations," one of the sources said, adding that six

entities under the banner are being examined currently.

The letter followed a July 10 meeting where SEBI asked

exchanges to look for trading patterns similar to those flagged

in its interim order, the second source said.

In that order, SEBI had focused on Jane Street's trades in

NSE's banking index.

The order said the firm had bought large quantities of stock

in constituents of the Bank Nifty index, in both the

cash and futures markets, during morning trade to artificially

support the index, while simultaneously building large short

positions in index options.

The firm later reversed the trades to profit from the

options, it added.