India's markets regulator labeled Jane Street Group LLC's demand for additional documents a "dilatory" tactic, a day after the Wall Street trading giant pressed for more information about the origins of the investigation against it. Gaurav Joshi, a lawyer representing the Securities and Exchange Board of India, opened Tuesday's arguments with a Hindi proverb suggesting Jane Street was trying to turn accusations against the regulator. The firm is seeking to question SEBI's conduct instead of explaining its trading strategy and responding to the interim order.
The outcome 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. 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) of alleged unlawful gains.
Jane Street deposited the amount in an escrow account but hasn't resumed trading in the country. The SEBI lawyer said Jane Street 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 defense against the interim order.
On Monday, it questioned the origins of the investigation after SEBI's surveillance department and the National Stock Exchange cleared it of any manipulation.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing