Jane Street Saga: SEBI Says Enforcement Action Based on Merit, Without Bias | Profit Exclusive

The Securities and Exchange Board of India said on Friday it takes action whenever it detects violations in the market, and enforces its orders based on merit, without bias, and in proportion to the violations identified, hours after barring US-based securities firm Jane Street from accessing Indian markets.

“We enter the picture whenever we see violations taking place. We try to correct the violation. All our enforcement actions are without bias, on merit and proportionate. We make it a point that all enforcement actions fulfil this criteria,” SEBI told NDTV Profit.

The remarks followed SEBI’s recent order against entities of the Jane Street Group. The regulator barred the firms from accessing the Indian securities market, prohibiting them from buying, selling or dealing in securities, either directly or indirectly. The order took immediate effect and will remain in force until further notice.

SEBI also directed the impounding of Rs 4,843.57 crore in alleged unlawful gains from the group. Jane Street entities must jointly and severally deposit the amount in an escrow account with a scheduled commercial bank in India. The escrow account must carry a lien marked in favour of SEBI, and the funds cannot be released without the regulator’s prior approval.

Separately, SEBI instructed banks to restrict all debit transactions from the accounts of Jane Street entities, whether held individually or jointly. Debit transactions are allowed only if they are for compliance with the order or if they exceed the impounded amount. Credit transactions may continue.

Jane Street Group said on Friday it disputes the findings of the Securities and Exchange Board of India’s interim order and intends to engage further with the regulator.

“Jane Street disputes the findings of the SEBI Interim Order and will further engage with the regulator. Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world,” a company spokesperson said in an emailed response to NDTV Profit.