Sebi says Jane Street’s appeal for more details a delaying ploy

India’s markets regulator called Jane Street Group LLC’s demand for additional documents a “dilatory” tactic, a day after the Wall Street trading giant pressed for more information about the origins of the investigation against it.

Gaurav Joshi, a lawyer representing the Securities and Exchange Board of India, opened Tuesday’s arguments with a Hindi proverb that roughly translated to “the thief reprimanding the police,” suggesting that Jane Street was trying to turn the accusations against the regulator. The hearing will continue on Wednesday.

The firm is seeking to question SEBI’s conduct instead of explaining its trading strategy and responding to the interim order, Joshi told a local court. The regulator was only required to provide documents it relied on to pass its order, and furnishing additional information could harm the ongoing probe, he argued.

The outcome of the case could shape global trading firms’ perceptions of the risks associated with operating in one of the world’s largest derivatives markets. Central to the controversy is SEBI’s allegation that Jane Street affected the pricing of stocks in the NSE Nifty Bank Index, a closely watched benchmark that serves as the foundation for heavily traded options contracts.

Read More: Jane Street Denies Manipulation Charges in India Appeal Case (1)

SEBI’s July 3, 2025 interim order temporarily banned the firm from trading in Indian securities and ordered the seizure of 48.4 billion rupees ($503 million) of alleged unlawful gains. Jane Street deposited the amount in an escrow account but hasn’t resumed trading in the country.

The SEBI lawyer said that it was for Jane Street to explain why its strategy does not amount to market manipulation, adding that the Wall Street trader has “succeeded in delaying” the matter for a year and a half.

Jane Street has been seeking additional documents and internal emails from the regulator to mount its defense against the interim order. On Monday, it questioned the origins of the investigation after SEBI’s surveillance department and the National Stock Exchange cleared it of any manipulation.

Joshi told the tribunal that the NSE report was “preliminary”, while an earlier review by the regulator was a “pre-investigative” finding. He also cited NSE’s caution letter to the trading firm and accused Jane Street of disregarding it.
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