Jane Street To Employees On SEBI's Interim Ban Order: 'Discussion Requests Rebuffed'

Jane Street told its employees that its attempts to engage with SEBI and exchanges since February were “consistently rebuffed,” after the regulator barred the firm from Indian markets, according to an internal communication sent over the weekend viewed by NDTV Profit.

In an internal note sent over the weekend, the firm said it had made multiple requests to discuss the regulator’s concerns but received no response before SEBI issued its interim order. “We are beyond disappointed that they chose instead to release a report claiming that we ignored those concerns,” the firm said.

Jane Street added that it will pursue all legal options, including a possible settlement under SEBI’s consent framework.

The regulator last week alleged that Jane Street earned Rs 43,289.33 crore through index options trading between January 2023 and March 2025 and directed the firm to deposit Rs 4,843.57 crore into an escrow account. The group was also barred from accessing the Indian securities market until further notice.

The firm said SEBI mischaracterised its strategy by focusing on an eight-minute trading window on Jan. 17, 2024. It described the activity as index arbitrage aimed at aligning prices between options and the underlying index. Jane Street also said its trading near market close was part of standard hedging practice to manage expiring positions.

The note said Jane Street had responded promptly to SEBI’s requests in August 2024 and paused trading after receiving letters from exchanges in February. It resumed activity with modifications after a meeting with the NSE.

Jane Street said it is preparing a formal response to SEBI’s allegations and will continue to update employees.

Commenting on Jane Street note, SEBI said that its order clearly lays out the regulator's prima facie case and addresses all relevant areas and questions, declining to comment further.