SEBI Says No More Data Needs To Be Given To Jane Street, SAT Asks To Submit Why
In a hearing conducted on Sept 9, SEBI stated that all relevant reports have already been shared with Jane Street and that 10 gigabytes of data were provided as part of the ongoing investigation.
The Securities and Exchange Board of India has told the Securities Appellate Tribunal that it is not required to provide any further data to global trading firm Jane Street as per law.
In a hearing conducted on Sept 9, SEBI stated that all relevant reports have already been shared and that 10 gigabytes of data were provided as part of the ongoing investigation. The regulator further said that the inquiry is still at a critical stage, with the show-cause notice yet to be issued, and that additional information sought by Jane Street is either irrelevant or confidential and cannot be disclosed at this point.
During the hearing, SEBI also accused Jane Street of market manipulation. The regulator pointed out that the firm had purchased a large quantity of Bank Nifty contracts in the morning and then executed derivative trades that were opposite in nature, dumping stocks.
SEBI alleged that this contradictory trading strategy points toward an attempt to rig the market, and it asked the company to explain the strategy behind such trades. SEBI added that the strategy itself was being withheld by the firm and that it had not filed a proper reply to the allegations.
In response, Jane Street argued that SEBI’s interim order was harsh. The counsel said, “You say that we have manipulated but you do not wish to disclose any details to me. You hold press conferences and condemn us in public.”
The high frequency firm also pointed out that the direction to deposit over Rs 4,800 crore in escrow could be unfair to smaller players in the market.
The tribunal bench noted that an escrow amount of Rs 4,800 crore had been deposited by Jane Street and acknowledged that the firm had sought certain documents to file its reply.
However, SEBI reiterated that no further documents are required by law at this stage. SAT has asked SEBI to respond with reasons explaining why it is not required to share more information and given the parties time to file their replies. The next hearing is scheduled for Nov 18.
