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News Topical, Digital Desk : American high-frequency trading company Jane Street on Wednesday filed a case in the Securities Appellate Tribunal (SAT) against India's market regulator, the Securities and Exchange Board of India (SEBI). SEBI has accused Jane Street of manipulating the Indian stock market. News agency Reuters has given this information citing documents.
This case is the first step in appealing against SEBI's orders. No official information has been revealed about this from Jane Street or SEBI yet.
What is the whole matter? In July 2025, SEBI temporarily banned Jane Street from the market, accusing it of manipulating the Bank Nifty and Nifty index in the Indian stock market. SEBI also ordered the confiscation of Rs 48.4 billion (about $ 567 million) of the company, which it described as "illegal gains". SEBI says that Jane Street influenced the index prices by trading extensively in the derivatives market, causing losses to small investors. Jane Street has rejected these allegations and said that its trading strategy was "basic index arbitrage", which is normal and legitimate. The company called SEBI's allegations "highly inflammatory" and said that it is taking legal steps to respond to them. SEBI alleges that Jane Street made large-scale purchases in the shares and futures of the Bank Nifty index in the morning, causing the index prices to rise. Subsequently, these shares were sold at the end of the day to bring down the index and make huge profits in the options market. SEBI called it a "pump-and-dump" strategy, which affected the fairness of the market. What could happen next? Jane Street has demanded from SAT that SEBI be directed to share documents and data that are necessary to defend the company. This case can affect India's derivatives market and the regulatory environment for foreign investors.
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