Jane Street Group
Sebi calls Jane Street's document request a delaying tactic, hearing to continue
India's markets regulator Sebi has described Jane Street Group's demand for additional documents as a dilatory tactic aimed at delaying proceedings. The remark came during a hearing at the Securities Appellate Tribunal where Sebi's lawyer, Gaurav Joshi, opened with a Hindi proverb meaning 'the thief reprimanding the police' to suggest the hedge fund was reversing accusations against the regulator.
Joshi argued that Jane Street must explain why its trading strategy does not constitute market manipulation, rather than seeking more documents from Sebi. He stated the regulator was only obligated to share records it relied on for its interim order, and providing further information could jeopardise the ongoing investigation.
The lawyer added that Jane Street has succeeded in prolonging the case for a year and a half. The firm is seeking Sebi's internal emails and trading records used to allege manipulation of the Nifty Bank Index, which underpins heavily traded options contracts.
Jane Street's legal team contends that access to underlying trading data—including counterparties, timing, volume, and prices—is necessary to test Sebi's allegations. The firm has deposited 48.4 billion rupees in an escrow account following Sebi's July 3, 2025 interim order, which barred it from trading in Indian securities and ordered seizure of alleged unlawful gains.
Despite earlier reviews by the National Stock Exchange and Sebi's Integrated Surveillance Department in 2024 finding no evidence of market abuse, Sebi renewed its investigation. The outcome may influence how global trading firms perceive risks in India's derivatives market.
The hearing is set to continue on Wednesday.
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