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19-11-2025
Bureau Report
NEW DELHI/ MUMBAI: India’s markets regulator will tell a court this week that it sees no reason to release additional data and documents to Jane Street, two sources with direct knowledge of the matter said, after the US firm appealed a securities trading ban.
The Securities and Exchange Board of India (SEBI) temporarily barred Jane Street in July, alleging the firm used its trading strategies to “manipulate” a key benchmark index of banking stocks, leading to losses for retail investors.
Jane Street denied the allegations and regained access to the Indian market by depositing a penalty amount. It also filed an appeal in India’s Securities Appellate Tribunal (SAT) in September in which it sought additional data and documents.
SEBI’s response, which has yet to be made public, will say that Jane Street’s appeal represents a delaying tactic by the US trading giant, one of the sources told media.
“The documents and data being sought could also undermine the ongoing investigation,” the second source added.
SEBI did not respond to an emailed request for comment.
A request for comment sent to Jane Street outside US business hours was not immediately answered.
Media reported in July that SEBI is examining detailed data of trading by Jane Street across all Indian benchmark indexes from January 2023 to May 2025.
SEBI’s ongoing investigation is looking for trading patterns similar to one flagged in the July order, where large positions were taken in constituents of an index in both the cash and futures markets, the second source said.
Earlier, an Indian court ordered the markets regulator on Tuesday to explain within three weeks why it cannot share further documents with US algo trading firm Jane Street, which was temporarily banned from markets in July on allegations that it had manipulated indexes.
The order from India’s Securities Appellate Tribunal was in response to an appeal filed by Jane Street last week that sought more documents from the Securities and Exchange Board of India.
The tribunal also effectively directed SEBI to pause any personal hearings with the trading firm until the matter is heard again on November 18.
A pause on a personal hearing will delay a confirmatory order from the regulator until after November 18 as the process followed by it mandates a hearing before passing an order.
In one of the strongest regulatory actions taken against a foreign investor, SEBI on July 4 suspended Jane Street from trading in the local securities market saying that the firm had manipulated India’s indexes. The US firm has denied the charge.
Jane Street has sought more information about a December 2024 internal report by SEBI’s surveillance department, which had studied the firm’s trading patterns and found no reason for further investigations.
On Tuesday, Jane Street questioned the differing conclusions reached by two SEBI departments on the same trading data, and requested the release of all related documents in SEBI’s possession.
Jane Street’s counsel also asked for communications between the National Stock Exchange of India and SEBI leading up to the interim order and trade logs with name of counterparties on trades executed by it.
In response, SEBI’s counsel said it cannot provide information that has not been used in the passing of the order.
The regulator accused Jane Street of engaging in a “fishing enquiry” instead of explaining its conduct.
