Jane Street challenges SEBI investigation, seeks details on renewed probe

The firm is seeking additional information from SEBI regarding the origins and conduct of the investigation, including redacted counterparty data from trade logs and details about inter-departmental communications and whistleblower complaints that led to the formation of the investigation committee. Jane Street's legal representative argued that withholding such information undermines natural justice and vitiates the regulatory process.

SEBI had previously issued an order in July 2025 alleging that Jane Street earned illicit gains of ₹4,840 crore through manipulative trades in bank stocks, a claim the firm denies. Although Jane Street deposited the amount, it has not resumed trading in India while the appeal remains pending before the Securities Appellate Tribunal.

The regulator renewed its investigation despite earlier clearances from both the National Stock Exchange and SEBI’s own surveillance department, which had found no evidence of market abuse. Jane Street contends that SEBI disregarded its internal review that had cleared the firm, raising concerns about procedural consistency.

The case is being closely monitored as a test of SEBI’s enforcement approach in India’s rapidly growing equity derivatives market, where retail traders have faced significant losses. The next hearing in the matter is scheduled for October 6.

Market participants are watching the outcome for its potential impact on how global trading firms perceive operational risks in one of the world’s largest derivatives markets.