Sebi urges Jane Street to justify trading tactics in SAT hearing

At a recent Securities Appellate Tribunal session, Sebi asserted that Jane Street had been supplied with sufficient material, including more than 10 GB of data, to respond to the regulator’s claims. Sebi’s counsel urged the firm to detail its trading methods and strategies, stating that the interim order could be vacated if the firm demonstrates it did not manipulate the market. The regulator also noted that the dispute had shifted from the firm’s conduct to the investigation process, placing the burden on Jane Street to explain its trades.

Jane Street’s representatives argued that the movements in the Nifty Bank index showed opposite directions to their positions, indicating no manipulation. The case stems from a July 3 interim order accusing the firm of a two-part manipulative strategy on expiry days, which led to a temporary trading ban that was lifted after an escrow deposit. Jane Street continues to seek additional documents, including Sebi’s Integrated Surveillance Department report.