SAT reserves order in trading giant Jane Street's case
What's the story
The Securities Appellate Tribunal (SAT) has reserved its order in the case of trading giant Jane Street. The company had sought additional documents and information from the Securities and Exchange Board of India (SEBI) to prepare its response to an interim ex-parte order issued by SEBI on July 3, 2025. Both parties have submitted their written submissions after arguments were made in the matter.
Accusations
Jane Street approached SAT in September 2025
In September 2025, Jane Street approached the SAT with allegations that SEBI had withheld some data, documents, and communications with the National Stock Exchange (NSE).
The information was believed to help the company respond to the regulator's charges.
It's important to note that these proceedings are focused on document disclosure and not on the merits of SEBI's interim order allegations.
Legal arguments
Jane Street denied any wrongdoing
During tribunal hearing, Jane Street denied any wrongdoing and insisted its transactions were part of a trading strategy.
The company also claimed it had sought clarification from the exchange and regulator on this strategy but did not receive necessary responses before SEBI passed the ex-parte order.
This, according to Jane Street, damaged its reputation.
In response, SEBI said it provided over 10GB of data related to the case but was not obliged to share information not relied upon during investigation.
Delays alleged
SEBI accused Jane Street of delaying proceedings
SEBI accused Jane Street of trying to delay the proceedings by seeking additional material instead of addressing the allegations.
The regulator claimed that the trading firm was trying to "investigate the investigator."
During these proceedings, SEBI also explained its allegations that Jane Street and related entities adopted manipulative trading strategies on Bank Nifty expiry days.
Manipulative strategies
Manipulation of Bank Nifty and other indices alleged
SEBI alleged that on one occasion, Jane Street and related entities bought some ₹4,370 crore worth of Bank Nifty constituent shares over two hours, while taking a bearish options position worth some ₹32,114 crore.
They later sold the stocks, causing prices to fall while the bearish options position gained in value.
In its July 3, 2025 interim order, SEBI accused Jane Street and related entities of manipulating Bank Nifty and other indices through coordinated trading in constituent stocks and derivatives.