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Informist, Tuesday, Oct. 6, 2026

 

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--[I] SEBI lawyer in SAT: No reply got from Jane Street group on trading patterns
--[I] SEBI lawyer argues in SAT Jane Street cos must answer their conduct
--[I] SEBI lawyer argues in SAT Jane Street matter still at probe stage
--[I] SEBI lawyer alleges in SAT Jane Street group adopting dilatory tactics
--[I] SEBI lawyer in SAT: Already given Jane Street group 10 GB of data material
--[I] SEBI lawyer in SAT:Jane Street group indulging in fishing, roving enquiries
--[I] SEBI lawyer in SAT: Jane Street matter only at confirmatory order stage
--[I] SEBI lawyer in SAT: Jane Street matter not at show cause notice stage
--[I] SAT to continue hearing Jane Street vs SEBI case Wed

 

MUMBAI – The senior legal counsel representing the Securities and Exchange Board of India in the Jane Street group case in the Securities and Appellate Tribunal demanding supply of additional documents and data from the market regulator on Tuesday argued before the court that the only object for making the demand for documents was to obstruct SEBI's ongoing investigation in the matter. He said SEBI has already given the Jane Street group more documents and data than was actually relied upon for passing the interim order, he said.

 

SEBI's counsel pointed to Jane Street group's grievance in its case filed with SAT that it wanted data and records over and above what has already been given to it by the regulator. He said SEBI has not only given the material which has been referred to in its Jul. 3, 2025, interim order against four Jane Street group entities, but also given other material "running into over 10 GB of data".

 

A full bench of SAT comprising presiding officer Justice P.S. Dinesh Kumar and technical members Meera Swarup and Dheeraj Bhatnagar heard SEBI counsel's arguments Tuesday, after the Jane Street group's lawyer argued before the court Monday. The court announced after Tuesday's hearing was over it will hear the case Wednesday for the SEBI legal counsel to complete his arguments. According to lawyers, the hearing in the case will continue beyond Wednesday to give the Jane Street group's counsel time to give his rejoinder to SEBI legal counsel's arguments.

 

The lawyer for SEBI argued that the Jane Street group was indulging in fishing and roving enquiries, and dilatory tactics. The foreign quantitative trading firm had not replied to any of SEBI's charges of manipulative trading patterns specified in detail in the interim order, he said. Instead of appealing against the interim order, the Jane Street group was trying to insinuate that SEBI's investigation itself was malafide, he said. The trading firm's demand for all reports, emails, call transcripts, minutes of meetings, file notings, appointment authorisation, surveillance alerts, and other records were aimed at trying to show SEBI was prejudiced in passing the interim order, he said. Jane Street group must answer for its conduct first, he said.

 

The case is at the confirmatory stage, and not at the stage where the regulator will issue a show cause notice, according to the SEBI legal counsel. As per law, the capital markets watchdog is required to provide only those documents and data that were relied upon by it before passing the interim order, but has already given far more than was required since the stakes were high, he said.

 

In its July 2025 order, SEBI had alleged that four Jane Street group entities--JSI Investments Pvt. Ltd., JSI2 Investments Pvt. Ltd., Jane Street Singapore Pte. Ltd., and Jane Street Asia Trading Ltd.--collectively manipulated Nifty Bank and Nifty 50 indices on certain index options expiry days through trading patterns involving large positions in index options, index futures, and underlying index stocks in the cash market. SEBI had ordered these entities to collectively disgorge alleged unlawful gains of INR 48.44 billion, which were later deposited by the group entities subject to final outcome.

 

Two of the four Jane Street group entities involved in the case were registered with SEBI as foreign portfolio investors, and the other two were Indian companies. One key alleged manipulative strategy involved the two non-FPI entities carrying out large intraday squaring off in cash market positions, which SEBI regulations prohibit FPIs from doing. The group's FPI entities were involved largely in carrying out the index options trades corresponding to opposite directions from their cash market trades.

 

Monday, during his arguments before the SAT, the legal counsel for Jane Street had sought counterparty trading details and the examination report of the National Stock Exchange of India that SEBI had received, along with reiterating its demand for copies of various reports, file notings, and other records.

 

In Tuesday's hearing, the SEBI legal counsel addressed the Jane Street lawyer's demand and said the group was seeking to know if some SEBI officer had taken a different view on the matter or whether NSE's examination report was half-baked. He said differences of opinions exist in every regulator when conducting investigations, but ultimately what matters is the view in the official order. With regard to NSE's examination report, the SEBI lawyer said it was a preliminary surveillance and inspection report, and SEBI had applied its own surveillance department's findings in the matter. He said a market regulator will resort to multiple sources during an investigation.  End

 

Reported by Rajesh Gajra

Edited by Shubhayan Bhattacharya

 

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