The Securities and Exchange Board of India (SEBI) is doubling down on its fight against market manipulation, with Chairman Tuhin Kanta Pandey asserting that the recent case involving US-based hedge fund Jane Street is an isolated incident. Speaking to reporters in Mumbai on Monday, Pandey revealed that SEBI sees “few other risks” comparable to Jane Street’s alleged manipulations, which netted the firm over Rs 4,800 crore in illicit gains.

In a bold move last Friday, SEBI issued an interim order banning Jane Street from Indian markets and ordering the impoundment of Rs 4,843 crore in unlawful profits. The regulator accused the New York-based hedge fund of orchestrating sophisticated trades across cash, futures, and options markets to manipulate stock indices, amassing a staggering Rs 36,671 crore in profits between January 2023 and May 2025.

“This is fundamentally a surveillance issue,” Pandey emphasized, noting that SEBI is upgrading its monitoring systems to prevent similar misconduct. He dismissed concerns about widespread manipulation by other funds, stating, “I don’t think there are very many other risks.” Instead, the focus is on enhancing enforcement and surveillance within existing regulations, rather than introducing new rules.

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Pandey also addressed speculation about shifting to monthly derivatives expiries to protect retail investors, clarifying that no such change is under consideration. “Any steps we take will be data-driven,” he said, hinting at an upcoming SEBI report detailing retail investor performance in derivatives over the past three months. This follows a prior SEBI study revealing that over 90% of retail investors suffer losses in derivatives trading, prompting targeted reforms.

The Jane Street case has sparked intense scrutiny of India’s derivatives market, the world’s largest by volume. SEBI’s swift action signals a zero-tolerance stance on manipulation, aiming to safeguard retail investors and maintain market integrity. As investigations continue, the regulator’s upgraded surveillance systems are poised to keep a closer watch on trading activities, ensuring that India’s capital markets remain a fair and transparent arena for all.

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