Jane Street denies manipulation charges in India appeal case

Jane Street Group LLC pressed with its case in its high-profile appeal against India’s securities regulator, denying charges of market manipulation and questioning why officials pursued the firm after earlier reviews found no wrongdoing.

The Wall Street firm told a local court on Monday that stocks in a banking index fell or rose irrespective of its trading activity. It is seeking additional information from the Securities and Exchange Board of India about the origins and conduct of the investigation.

The dispute has become a test of SEBI’s enforcement powers following its July 2025 order against Jane Street, which included the seizure of 48.4 billion rupees ($503 million) in alleged ill-gotten gains. Jane Street denied the allegations and deposited the money, but has yet to resume trading in India.

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The case is being watched closely for how it might shape global trading firms’ views of the risks of operating in one of the world’s largest derivatives markets. At the heart of the dispute is SEBI’s allegation that Jane Street influenced prices of stocks in the NSE Nifty Bank Index, one of India’s most closely watched gauges and the basis for heavily traded options contracts.

Denying the charges of abuse, Darius Khambata, a lawyer representing Jane Street, told the tribunal that stocks in the index rose even when the firm sold shares. Jane Street sought redacted counterparty information included in SEBI’s trade logs that formed part of the interim order.

SEBI had renewed its investigation against Jane Street even after the National Stock Exchange and the regulator’s surveillance department cleared the firm of market abuse.

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Jane Street has sought additional information from SEBI on its inter-department communication and whistleblower complaints that prompted the regulator to set up an investigation committee.

Withholding documents from the trading firm would “vitiate” the process and contravene principles of “natural justice,” Khambata argued, adding that Jane Street wanted to understand why the regulator disregarded its own internal review that had cleared the company.

Indian regulators have clamped down on the country’s booming equity options market after individual investors suffered widespread losses on the other side of trades conducted by sophisticated global entities. Retail traders lost about $9.6 billion trading equity futures and options in the year ended March.

The next hearing in the Securities Appellate Tribunal is scheduled for Oct. 6.