Jane Street Probe: SEBI’s Interim Action Justified, Order Speaks For Itself, Says Tuhin Kanta Pandey | Markets News

Last Updated:July 07, 2025, 13:31 IST

SEBI Chairman Tuhin Kanta Pandey reaffirmed the regulator’s authority to act against market manipulation amid the Jane Street probe

SEBI Chairman Tuhin Kanta Pandey on July 7 reaffirmed the regulator’s authority to act against market manipulation and fraudulent practices, in the context of the ongoing investigation involving global quant trading firm Jane Street.

Commenting on SEBI’s interim order that barred Jane Street from Indian markets, Pandey said, “The order speaks for itself. SEBI has all the powers it needs under existing regulations to act against manipulative and fraudulent activity.”

When asked whether additional regulations are needed to curb such activities, Pandey emphasized that better enforcement and enhanced surveillance, rather than new rules, are key. “We brought this action within the current regulatory framework. More regulations don’t necessarily mean better regulation. What’s required is effective enforcement and upgraded surveillance,” he stated.

He added that the order was the result of extensive analytical work and acknowledged that manipulative practices can take varied forms. “Manipulation isn’t always straightforward. Our PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations clearly prohibit such actions, and SEBI is empowered to investigate and act within that framework,” Pandey noted.

On strengthening oversight, the SEBI chief said both the regulator and the stock exchanges are treating the Jane Street matter as a surveillance issue. “Surveillance will continue both at the exchange level and SEBI level, and we will continue to enhance our capabilities in this regard,” he said.

Why Did SEBI Ban Jane Street?

The case finally reached the regulator SEBI on July 3, resulting in a ban on the Dalal Street proprietary trading giant. Jane Street, which operates in over a dozen markets worldwide, had been exploiting India’s largest derivatives exchange, the NSE, for years. By manipulating the prices of the 12-stock Bank Nifty index, the firm earned over one-fifth of its $20.5 billion net income from this single market.

Their strategy involved artificially inflating prices to lure unsuspecting retail investors into buying those stocks or their derivatives. Once prices hit their targets, Jane Street would offload its positions, leaving retail investors with the losses.

According to Sebi’s initial assessment, JS Group entities have pocketed a whopping Rs 36,502 crore by this pumping and dumping strategy between January 1, 2023 and March 31, 2025 just from manipulating primarily three (HDFC Bank, ICICI Bank and Kotak Bank which constitute as much as 65% of the sectoral index weighting) of the 12 Bank Nifty stocks -– all in just 21 trading days and Rs 735 crore in just one day on January 17, 2024.

Unearthing their nakedly illegal practice, the Sebi in an interim order, issued by its whole time member Anantha Narayan G, banned the from the market as well as ordered impounding of Rs 4,843.5 crore of illicit gains they made, which it hopes to recover from their Rs 15,000 crore of Gsecs holding as from July one, the regulator has restricted a traders carry forward derivatives positions to just about Rs 1,500 crore.

While the order is interim, the bank on them is in force from the date of the order and will continue till the final order is issued or courts lift/stay the order or until the company returns the alleged unlawful gains of Rs 4,843 crore.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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