Stories
SEBI Slams Jane Street in SAT Over Market Manipulation Allegations
- •SEBI told the Securities Appellate Tribunal that Jane Street was attempting to shift focus from market manipulation allegations to the regulator's investigation methods.
- •Senior Advocate Gaurav Joshi used the phrase ulta chor kotwal ko daante to describe Jane Street's approach of questioning the investigator rather than addressing its trading conduct.
- •SEBI alleged that Jane Street adopted manipulative strategies on index options expiry days, making unlawful and lawful gains totalling around Rs 4,843 crore.
- •The market regulator opposed Jane Street's demands for additional documents, stating the case is still at the pre-show-cause notice and investigation stage.
- •SEBI argued that market manipulation is a cat-and-mouse game and that Jane Street must explain the structure and intent of its trades rather than engage in dilatory tactics.
Key Questions Answered
SEBI argued that Jane Street was attempting to deflect from market manipulation allegations by investigating the investigator, with Senior Advocate Gaurav Joshi describing the tactic as the accused turning tables on the regulator. Joshi maintained that Jane Street must instead explain its trading conduct and strategy on index options expiry days.
SEBI alleged that Jane Street adopted two manipulative strategies on index options expiry days, simultaneously taking massive bearish options positions while buying and selling Bank Nifty constituent shares to cause price drops. The regulator stated that these strategies generated unlawful and lawful gains totaling around Rs 4,843 crore during the examination period.
SEBI argued that the case remains at the pre-show-cause notice and investigation stage, meaning the regulator is not obligated to provide every document in its possession beyond those relied upon in its interim order. Joshi described Jane Street's ongoing demands as dilatory tactics and fishing inquiries that only delay proceedings on the merits.
