Jane Street Moves SAT Seeking Access to SEBI, NSE Reports in Ongoing Dispute

US-based trading firm Jane Street has approached the Securities Appellate Tribunal (SAT), seeking access to key reports in its dispute with the Securities and Exchange Board of India (SEBI). The firm alleged that SEBI withheld documents that had earlier cleared it of wrongdoing, even as the regulator proceeded with an adverse order.

Jane Street’s Arguments

In its plea, Jane Street said that both SEBI’s Internal Surveillance Department (ISD) report and a separate National Stock Exchange (NSE) report had exonerated the firm. The NSE report, according to Jane Street, found no evidence of manipulation in 48 out of 53 time slots examined. SEBI’s internal report also concluded that the firm had not unduly benefited from its trading activity or influenced Bank Nifty, recommending no further action.

The company argued that SEBI’s July order contradicted these findings. “Why has SEBI junked its own reports to pass this order?” counsel for Jane Street asked, calling it a “volte face.”

Allegations of Withheld Reports

Jane Street said it was “shocked” to learn that these reports predated SEBI’s July 4 order, which temporarily barred the firm from Indian markets. The company is also seeking access to internal communications between SEBI and the NSE to understand why the regulator changed its stance after receiving a complaint from a UAE-based trader.

SEBI’s Response

SEBI opposed the plea, dismissing it as a “fishing expedition” for documents. The regulator said it had already provided around 10 GB of data to Jane Street and maintained that the investigation was still in progress. “We cannot disclose further details while the probe is incomplete,” SEBI told the tribunal.

Next Hearing

The Tribunal has scheduled the next hearing in the case for November 18, where SEBI is expected to respond further to Jane Street’s demand for access to the reports.

Conclusion

The case highlights a growing dispute between one of the world’s largest trading firms and India’s market regulator. With Jane Street questioning the regulator’s reliance on certain findings while allegedly sidelining others, the matter is set to remain closely watched until the next hearing in November.

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