Sebi tells SAT that Jane Street has enough data to respond to market manipulation charges
Sebi argued that the trading firm should explain the manner, strategy and rationale behind its trades rather than seek additional documents from the regulator.
- Oct 6, 2026,
- Updated Oct 6, 2026 6:38 PM IST
The Securities and Exchange Board of India (Sebi) has told the Securities Appellate Tribunal (SAT) that Jane Street has already been provided sufficient material to respond to allegations that it manipulated the Bank Nifty index, according to a Business Standard report.
At a hearing on Tuesday, Sebi argued that the trading firm should explain the manner, strategy and rationale behind its trades rather than seek additional documents from the regulator.
Sebi’s counsel told the tribunal that if Jane Street can demonstrate that its trading did not amount to market manipulation, the regulator’s interim order could “probably be vacated”.
The regulator said it had shared not only the material cited in its interim order but also more than 10 GB of data with the firm.
Sebi argued that the dispute was increasingly shifting from Jane Street’s trading behaviour to the process followed by the regulator during its investigation.
According to Sebi, the burden was on Jane Street to explain its “mode, manner and reasons” for executing the trades and the strategies it employed.
The regulator also maintained that the matter was still at the investigation stage and that it was not required to provide every document in its possession at this point. It argued that only documents referred to and relied upon in the interim order needed to be provided at this stage.
Sebi further told SAT that Jane Street’s demand for additional information was delaying the completion of the investigation.
The case relates to Sebi’s July 3 interim order, in which the regulator accused US-based trading firm Jane Street and its group entities of manipulating the Bank Nifty index through a two-part trading strategy. Sebi alleged that the entities made unlawful gains of around ₹4,843 crore through the alleged manipulation.
The regulator had temporarily barred the entities from trading in India. The restriction was lifted on July 18 after Jane Street deposited the alleged gains in an escrow account.
Jane Street has denied Sebi’s allegations, maintaining that its trading activity represented conventional index arbitrage rather than market manipulation.
A day before Sebi’s submissions, lawyers representing Jane Street told SAT that movements in some Bank Nifty stocks had been contrary to the firm’s trading positions, arguing that this undermined Sebi’s manipulation allegations.
Jane Street has also sought access to additional documents, including Sebi’s Integrated Surveillance Department report and correspondence between the regulator and NSE, as it challenges the findings in the interim order.
The Securities and Exchange Board of India (Sebi) has told the Securities Appellate Tribunal (SAT) that Jane Street has already been provided sufficient material to respond to allegations that it manipulated the Bank Nifty index, according to a Business Standard report.
At a hearing on Tuesday, Sebi argued that the trading firm should explain the manner, strategy and rationale behind its trades rather than seek additional documents from the regulator.
Sebi’s counsel told the tribunal that if Jane Street can demonstrate that its trading did not amount to market manipulation, the regulator’s interim order could “probably be vacated”.
The regulator said it had shared not only the material cited in its interim order but also more than 10 GB of data with the firm.
Sebi argued that the dispute was increasingly shifting from Jane Street’s trading behaviour to the process followed by the regulator during its investigation.
According to Sebi, the burden was on Jane Street to explain its “mode, manner and reasons” for executing the trades and the strategies it employed.
The regulator also maintained that the matter was still at the investigation stage and that it was not required to provide every document in its possession at this point. It argued that only documents referred to and relied upon in the interim order needed to be provided at this stage.
Sebi further told SAT that Jane Street’s demand for additional information was delaying the completion of the investigation.
The case relates to Sebi’s July 3 interim order, in which the regulator accused US-based trading firm Jane Street and its group entities of manipulating the Bank Nifty index through a two-part trading strategy. Sebi alleged that the entities made unlawful gains of around ₹4,843 crore through the alleged manipulation.
The regulator had temporarily barred the entities from trading in India. The restriction was lifted on July 18 after Jane Street deposited the alleged gains in an escrow account.
Jane Street has denied Sebi’s allegations, maintaining that its trading activity represented conventional index arbitrage rather than market manipulation.
A day before Sebi’s submissions, lawyers representing Jane Street told SAT that movements in some Bank Nifty stocks had been contrary to the firm’s trading positions, arguing that this undermined Sebi’s manipulation allegations.
Jane Street has also sought access to additional documents, including Sebi’s Integrated Surveillance Department report and correspondence between the regulator and NSE, as it challenges the findings in the interim order.