India Regulator Set to Decline Jane Street’s Data Request in Court
Mumbai – India’s markets regulator is preparing to inform the court that it does not see any basis for providing additional documents and data requested by Jane Street, according to people familiar with the matter.
The move comes as the U.S.-based trading firm continues its appeal of a temporary trading ban imposed earlier this year over alleged manipulation of a key banking index.
The Securities and Exchange Board of India (SEBI) had barred the firm in July, citing concerns that certain trading strategies had distorted pricing in an important benchmark index.
SEBI said the activity contributed to losses for retail investors, prompting closer scrutiny of the firm’s large and simultaneous positions in cash and futures markets.
Jane Street has denied the allegations and regained access to Indian markets shortly after by depositing the required penalty amount with the regulator.
The company later approached India’s Securities Appellate Tribunal seeking more detailed records, saying the information was essential for presenting a clear defense.
Sources indicate SEBI will argue that the request for additional materials is unnecessary and may be aimed at slowing ongoing investigative steps.
Officials involved say releasing such data could risk exposing sensitive details that are part of active examination.
The regulator’s written response is expected to be filed in court this week, though it has not yet been made public.
Those familiar with the case say SEBI will maintain that it has already provided all documents required under procedure and that further disclosures could compromise the integrity of the probe.
Jane Street has not issued any fresh statement regarding the upcoming hearing, and earlier inquiries sent outside U.S. business hours were left unanswered.
The firm has consistently stated that it follows regulatory requirements across global markets and has rejected suggestions of index manipulation.
Investigators have been reviewing historical trading data for several months, covering activity from January 2023 through May 2025 across major Indian benchmark indices.
The analysis focuses on identifying patterns similar to those highlighted in SEBI’s July order, which described sizeable and coordinated trades in multiple index constituents.
According to people aware of the review, SEBI is examining whether the firm’s strategies created disruptions by exerting influence in the cash market while simultaneously building futures positions.
Such patterns, if proven, could indicate attempts to impact index levels in ways that benefit specific trading strategies.
The upcoming court proceedings are expected to determine whether Jane Street will receive the additional disclosures it has sought.
Legal experts note that the appeal process could shape how much investigative material trading firms may access during regulatory disputes in India.
Market observers say the case has drawn wide attention because Jane Street is considered one of the world’s most sophisticated trading firms with deep involvement in index and ETF markets.
Industry participants are watching closely to see how the regulator balances transparency with the need to preserve confidentiality during investigations.
Even as the legal steps continue, SEBI has reiterated that its priority is protecting market integrity and preventing potential disruptions in benchmark indices.
Analysts say the outcome of the case could influence how similar investigations are handled in future, especially when cross-border firms are involved.
Further hearings are expected in the coming weeks as the tribunal reviews SEBI’s submission and considers the firm’s arguments for broader disclosure.
The decision could impact not only Jane Street’s operations in India but also broader regulatory expectations for high-frequency and algorithmic trading firms.
