Jane Street Takes on SEBI in $567 Million Market Manipulation Battle
Jane Street challenges SEBI’s $567M penalty, accusing regulator of withholding evidence.
U.S.-based high-frequency trading firm Jane Street escalated its dispute with the Securities and Exchange Board of India (SEBI) by filing an appeal with the Securities Appellate Tribunal (SAT) in Mumbai. The appeal contests SEBI’s July 3, 2025, interim order, which accused Jane Street of manipulating India’s Bank Nifty and Nifty indices, imposing a Rs 4,843 crore ($567 million) penalty and barring four of its entities from the Indian securities market.
In its filing, Jane Street alleges that SEBI withheld critical documents and data essential for its defense, asserting that these materials are “undeniably relevant” to rebutting the market manipulation charges. The firm claims a prior SEBI inspection in December 2024, alongside an earlier National Stock Exchange (NSE) review in November 2024, found no evidence of manipulation, a finding SEBI later reversed without explanation.
Jane Street seeks to quash SEBI’s orders, demands access to the withheld documents, and requests interim relief to prevent further regulatory actions pending the appeal’s outcome.
Jane Street has complied with SEBI’s directives by depositing the penalty amount into an escrow account, leading SEBI to lift the trading ban, though the firm has paused its options trading in India. Reports suggest the SAT may hear the appeal on September 8, 2025, though the tribunal’s official cause list has not been updated. Neither Jane Street nor SEBI responded to requests for comment.
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The case marks a rare challenge by a major U.S. firm against India’s market regulator, highlighting tensions over regulatory transparency and fairness in one of SEBI’s strongest actions against a foreign investor.
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