SEBI Calls Jane Street's Document Request a Delay Tactic in Market Probe

Court Arguments

India's markets regulator told an appellate tribunal that a US-based hedge fund's demand for extra files is a delaying trick. Gaurav Joshi, a lawyer for the Securities and Exchange Board of India, used a Hindi proverb meaning the thief scolding the police to describe Jane Street Group's approach during Tuesday's hearing.

The Dispute

Jane Street asked the Securities Appellate Tribunal to tell SEBI to share the trading records behind market manipulation claims. SEBI argued the firm should explain its trading strategy instead of questioning the regulator, noting the Wall Street trader has delayed the matter for a year and a half. The regulator stated it only had to share documents used for its order, and giving out more files could hurt the ongoing probe.

Background

The firm wants internal emails and documents to fight an interim order from July 3, 2025. That order temporarily banned Jane Street from Indian securities and ordered the seizure of 48.4 billion rupees in alleged unlawful gains, which the firm put in an escrow account without resuming trading. Jane Street's lawyer argued the allegations need underlying trading data to be tested properly, adding that two 2024 reviews by the National Stock Exchange and SEBI's surveillance department previously cleared the firm.

Context

Regulatory disputes involving major foreign funds and local market watchdogs often center on access to complex algorithmic trading data and internal communications. Financial regulators must balance fairness in legal defense with protecting sensitive investigative records and surveillance methods during active probes.