More SEBI Action Likely Before Final Jane Street Order | Profit Exclusive

The Jane Street fiasco, which began more than a month back, is likely to see the Indian market regulator, Securities and Exchange Board of India or SEBI, take more action before the final order on the case is pronounced. This as the Indian stock exchanges have been regularly submitting trading data related to Jane Street entities across indices to SEBI, people in the know have told NDTV Profit.

Based on the inputs received, SEBI is expected to issue further directions before passing a confirmatory order in the case. The move comes as SEBI investigates the scale and nature of alleged market manipulation by the global trading firm.

NDTV Profit had previously reported on Jul 30, that the global trading firm Jane Street is treading cautiously in the Indian market despite receiving regulatory clearance to resume trading, sources told NDTV Profit.

Jane Street is currently in a wait-and-watch mode and has refrained from engaging in high-volume transactions. This cautious approach comes in the wake of intensified scrutiny by Indian market regulator, which is examining whether alleged manipulation extended beyond the Bank Nifty index on the National Stock Exchange. According to those familiar with the matter, the oldest stock exchange in the country, BSE, has also been requested to share data related to its indexes.

Moreover, it is learnt that Jane Street has sought additional time from SEBI to file its official response in the ongoing investigation. During its last interaction with the regulator, the firm reportedly gave an undertaking to ensure compliance with all market norms.

SEBI’s probe could potentially widen in scope, prompting firms under examination to take a more restrained approach until further clarity emerges.