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India’s markets regulator called Jane Street Group LLC’s demand for additional documents a “dilatory” tactic, a day after the US-based hedge fund asked the Securities Appellate Tribunal (SAT) to direct the Securities and Exchange Board of India (Sebi) to share the trading records behind its market manipulation allegations. Gaurav Joshi, a lawyer representing Sebi, opened Tuesday’s arguments with a Hindi proverb that roughly translates to “the thief reprimanding the police,” suggesting that Jane Street was trying to turn the accusations against the regulator. The hearing will continue on Wednesday, Bloomberg reported. The firm is seeking to question Sebi’s conduct instead of explaining its trading strategy and responding to the interim order, Joshi told a local court. The regulator was only required to provide documents it relied on to pass its order, and furnishing additional information could harm the ongoing probe, he argued. The Sebi lawyer said that it was for Jane Street to explain why its strategy does not amount to market manipulation, adding that the Wall Street trader has “succeeded in delaying” the matter for a year and a half. Jane Street has been seeking additional documents and internal emails from the regulator to mount its defence against the interim order. At Monday’s hearing, Jane Street’s lawyer said that Sebi should hand over the trading records used to accuse the firm of manipulating index prices and then profiting from options trading. Jane Street’s lawyer argued that the regulator’s allegations could not be properly tested without access to the underlying trading data, including information about counterparties, timing, quantum, and prices. Sebi had renewed its investigation against Jane Street even after the National Stock Exchange (NSE) and the regulator’s surveillance department cleared the firm of market abuse. On September 4, Jane Street’s lawyer sought access to correspondence between Sebi and NSE relating to a study by the exchange of the firm’s trades. Two earlier reviews conducted in 2024 by NSE and Sebi’s Integrated Surveillance Department (ISD) found no evidence that its trades influenced index prices to benefit its options positions. The outcome of the case could shape global trading firms’ perceptions of the risks associated with operating in one of the world’s largest derivatives markets. Central to the controversy is Sebi’s allegation that Jane Street affected the pricing of stocks in the NSE Nifty Bank Index, a closely watched benchmark that serves as the foundation for heavily traded options contracts, as per the Bloomberg report. Sebi’s July 3, 2025, interim order temporarily banned the firm from trading in Indian securities and ordered the seizure of 48.4 billion rupees ($503 million) in alleged unlawful gains. Jane Street deposited the amount in an escrow account but hasn’t resumed trading in the country. (With inputs from Bloomberg) Disclaimer: We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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