MUMBAI: The Securities Appellate Tribunal on Wednesday directed the Securities and Exchange Board of India to specify what documents and information it had provided to US-based trading firm Jane Street beyond what was legally required, in a case involving alleged unlawful gains of Rs 4,843 crore. The proceedings at the appellate body centered on the extent of records and market data that should be disclosed to Jane Street and its group entities as the firm prepares its response to regulatory allegations.
Dispute Over Scope of Requested Trading Records
During the hearing, Jane Street submitted that it had requested only a short list of records to prepare its defence. SEBI contested this characterization, arguing before the tribunal that the submission was merely a summary of a much wider set of documents sought by the firm. Counsel for the regulator maintained that authorities had already furnished more material than was statutorily mandated at this stage of the regulatory process.
Jane Street is seeking detailed trading logs, including specific transaction prices, traded volumes, and precise execution timestamps, to mount its legal challenge. SEBI informed the tribunal that these core trading parameters had already been made available, though identifying details and names of the counterparties involved in the trades were redacted from the files.
Broad Demands for Internal Communications and Exchange Data
According to SEBI, the trading firm has also sought records relating to internal communications and data exchanges between the regulator and the National Stock Exchange. The requests extend to third-party complaints, representations received by SEBI, internal position data placed before regulatory divisions, and email correspondence between exchange officials and the regulator.
The dispute stems from SEBI’s interim order passed in July 2025, which accused Jane Street and affiliated entities of manipulating the Bank Nifty index through a coordinated strategy across the cash and derivatives segments. SEBI alleged the trades yielded unlawful gains of approximately Rs 4,843 crore, a charge Jane Street has denied. While SEBI initially imposed market bans and ordered the disputed amount deposited into an escrow account, the trading restrictions were lifted after the funds were deposited without admission of guilt.
Tribunal to Determine Extent of Document Disclosure
Trading records remain central to the regulatory action, as SEBI’s allegations rely heavily on specific order patterns across cash and futures segments to establish market influence. While SEBI maintains that it has shared all information relied upon in its interim findings and is under no obligation to disclose counterparty identities, Jane Street argues that the full suite of requested documents is essential to answer the charges.
The tribunal will resume hearing the matter on Thursday, when Jane Street is scheduled to present its response. Following those arguments, the appellate body is expected to deliberate on which additional documents must be disclosed to the firm and which records SEBI may legitimately withhold from the proceedings.
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