SEBI now has three weeks to respond before hearings resume in November.
The Securities Appellate Tribunal (SAT) has reportedly directed the Securities and Exchange Board of India (SEBI) to explain within three weeks why it cannot provide additional documents to U.S.-based trading firm Jane Street, which was banned from Indian markets in July on charges of market manipulation.
The appellate court issued the order in response to Jane Street’s appeal last week, where the firm sought access to more records related to SEBI’s investigation.
The tribunal also instructed SEBI to pause personal hearings with Jane Street until the matter is heard again on November 18. This effectively delays SEBI’s ability to issue any final order on the matter.
SEBI vs Jane Street
On July 4, SEBI barred all entities of the Jane Street Group from participating in the Indian securities market and ordered the impounding of ₹4,844 crore in alleged unlawful gains. The regulator said the firm made ₹43,289 crore in profits through index options trading between January 2023 and March 2025.
SEBI alleged that Jane Street and its affiliates manipulated the Bank Nifty index by building large early positions in underlying stocks while shorting corresponding options, ultimately incurring losses in cash trades but making substantial gains from derivatives.
Jane Street has denied the charges and pointed out that SEBI’s own surveillance department, in a December 2024 report, found no reason for further investigation. The firm questioned conflicting findings from different SEBI divisions and demanded access to related communications, including exchanges with the National Stock Exchange and counterparties to its trades.
In response, SEBI argued it cannot share documents not used in the interim order and accused Jane Street of conducting a “fishing enquiry.” It said the probe remains at a “critical juncture” and could result in a broader final order.
While trading permissions have since been restored, the firm continues to stay out of Indian markets, citing damage to its global reputation.
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