US trading firm Jane Street appeals against SEBI over market manipulation allegations

Jane Street, a leading global algorithmic trading firm, told the Securities Appellate Tribunal that SEBI withheld critical documents it considers essential to contest market manipulation charges, urging the tribunal to compel the regulator to provide the information

U.S.-based high-frequency trading firm Jane Street has filed an appeal against India’s markets regulator, the Securities and Exchange Board of India (SEBI), after being accused of manipulating domestic stock indexes. The case, submitted on Wednesday (September 3), has been moved to the Securities Appellate Tribunal (SAT), the first level of appeal against SEBI’s orders.

Jane Street, a major global player in algorithmic trading, has argued in its filing that SEBI has withheld critical documents and data it deems necessary to respond to the allegations. The firm urged SAT to instruct the regulator to provide the missing information, describing it as “undeniably relevant” to its defense.

Regulatory action and company response

SEBI had, on July 4, imposed a temporary trading ban on Jane Street in one of its strongest actions against a foreign investor, alleging manipulation of India’s key market indexes. The firm was directed to submit its response within 21 days, but the deadline has since lapsed.

While Jane Street declined to comment on the matter when contacted, SEBI has not issued an immediate response either. Sources familiar with the case reportedly indicated that the appeal focuses primarily on transparency and access to evidence rather than a direct rebuttal of the manipulation charges.

The outcome at SAT will determine whether Jane Street gains access to the requested materials before proceeding further with its defense.