SEBI's Second-in-Command Ananth Narayanan Steps Down Post Three-Year Term After Leading Jane Street Probe

Ananth Narayan Goplakrishnan, the senior regulatory official who led the Securities and Exchange Board of India's high-profile probe into alleged market manipulation by US high-frequency trading firm Jane Street, stepped down on Thursday at the end of his three-year term, reported news agency Reuters.

As SEBI's second-ranking official, Narayan oversaw both market regulation and foreign investor oversight. A veteran banker with over two decades at leading global financial institutions, he joined the regulator in October 2022 and played a central role in implementing a series of measures to temper speculation in India's overheated derivatives market while tightening disclosure norms for investment vehicles and offshore funds.

Narayan's exit comes at a crucial stage in the Jane Street investigation, which SEBI has described as being at a "critical juncture" and potentially wide in scope.

In July, SEBI took one of its strongest actions yet against a foreign investor, temporarily suspending Jane Street from trading in Indian securities markets on allegations of index manipulation — charges the US firm has denied.

Jane Street, which reported $10.1 billion in net trading revenue in the second quarter, has since appealed SEBI's decision, alleging the regulator withheld key documents essential to its defense. On Sept. 9, an Indian court ordered SEBI to respond to the appeal, effectively pausing the regulator's final order until the matter is heard on Nov. 18.

Beyond the investigation, Narayan's tenure has been marked by key policy reforms aimed at improving foreign investor processes and addressing risks from surging retail participation in equity derivatives, where over 90% of traders lose money.

According to an August Reuters report, SEBI is weighing structural changes such as extending derivative contract maturities and introducing product suitability norms to curb excessive risk-taking among retail investors.