SEBI Denies Additional Data Share to US Trading Firm Jane Street

The Securities and Exchange Board of India (SEBI) has decided not to share further information with the US trading firm Jane Street, as the regulator’s investigation into alleged market manipulation deepens, as per news reports. The case has drawn significant attention, especially because of its possible consequences on India’s derivatives market.

Sebi’s Position on Withholding Data

SEBI told the Securities Appellate Tribunal (SAT) that it will not provide any more documents to Jane Street, as the investigation is ongoing and its scope is widening. 

As per news reports, Senior counsel Gaurav Joshi stated that “The investigation is at a very critical stage. We are not going to give every single document. Most of the material (sought) is irrelevant, or confidential and not required to be given at this stage. No show-cause has been issued because we are still investigating the matter.’’ 

He also mentioned that the regulator had already provided over 10 gigabytes of data and that documents such as draft reports, meeting minutes, and analyses of circulars were neither relied upon in the July 3 order nor relevant at this point.

Jane Street’s Requests and Legal Proceedings

Jane Street’s legal team, represented by senior counsel Darius Khambata, argued that certain documents are essential for its defence. These include prior surveillance reports from Sebi’s Integrated Surveillance Department and correspondence with the National Stock Exchange (NSE), which the firm claims cleared it of wrongdoing. 

As per news reports,  Khambata asked, “Why should SEBI be concerned about producing it? Is it because the report exonerates us? If it is material, it must be disclosed.” 

Additionally, Jane Street requested access to the complaint filed by a UAE-based hedge fund manager, alleging that it influenced SEBI’s actions within 20 days. The firm also sought complete trade logs, including counterparty details, though SEBI clarified that only unrelated third-party names had been masked. 

SAT admitted the appeals filed by Jane Street and its affiliates and instructed SEBI to explain within three weeks why the documents cannot be shared. The matter will be heard again on 18 November.

Read More: Jane Street's Plea Against SEBI Postponed to September 9 by SAT!

Conclusion 

The case between Sebi and Jane Street highlights the challenges of balancing transparency with the need for confidentiality in regulatory investigations. The outcome could shape future enforcement in India’s derivatives market. Both parties are preparing for the next hearing, which may influence how market practices are monitored and defended

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