SAT reserves order in Jane Street case over access to SEBI documents

The Securities Appellate Tribunal (SAT) on Wednesday reserved its order in the matter involving Jane Street, after the global trading firm asked for more documents and information from the Securities and Exchange Board of India (SEBI). Jane Street says it needs these materials to properly respond to SEBI’s interim ex-parte order dated July 3, 2025.Both SEBI and Jane Street told SAT that they had already submitted their written arguments following earlier hearings.

The tribunal recorded these submissions and reserved its decision to be delivered later.Jane Street had moved SAT in September 2025, claiming that SEBI had withheld certain data, records and communications with the NSE that it believes are necessary to answer the regulator’s charges. The current proceedings are limited to the question of document disclosure and do not examine the substantive merits of SEBI’s allegations in the interim order.During the hearings, Jane Street denied any misconduct, asserting that its trades were part of a legitimate trading strategy.

The firm also said it had sought clarifications from both the exchange and SEBI about this strategy but did not receive adequate responses before SEBI issued the ex-parte order, which, according to the firm, harmed its reputation.Jane Street further referred to an internal SEBI surveillance note which, as per its submissions, stated that SEBI’s surveillance department could not conclude that the group had moved Bank Nifty prices in a way that benefited its derivatives positions. The firm said this note suggested the matter should be closed and questioned SEBI’s decision to later reopen the case and launch a fresh investigation.SEBI, in its submissions, told the tribunal that it had already shared more than 10 GB of case-related data with Jane Street. The regulator argued that it is not required to provide material that it did not rely upon during its investigation.

SEBI accused Jane Street of trying to drag out the proceedings by demanding additional documents instead of responding to the core allegations. The regulator contended that the firm was effectively attempting to “investigate the investigator.”SEBI also elaborated on its charge that Jane Street and connected entities used manipulative trading strategies on Bank Nifty expiry days.In one example cited by SEBI, the regulator alleged that the entities purchased about Rs 4,370 crore worth of Bank Nifty constituent stocks over roughly two hours, while at the same time building a bearish options position of around Rs 32,114 crore.

According to SEBI, they then offloaded the shares, pushing prices down, which in turn increased the value of their bearish options positions.In its interim order of July 3, 2025, SEBI alleged that Jane Street and related entities manipulated Bank Nifty and other indices through coordinated trades in index constituents and derivatives. The regulator estimated the wrongful gains at Rs 4,843.57 crore and instructed the group to park this amount in an escrow account. Jane Street complied with the deposit requirement but has continued to deny all allegations.Source: Moneycontrol