SEBI tells court it shared trade logs with Jane Street in market manipulation probe

UPDATE - follow-up to Jane Street gets SEBI trade logs as regulator presses firm on manipulation allegations: The Securities and Exchange Board of India told a local court that it has handed over key trade logs to Jane Street Group LLC. The regulator wants the trading firm to answer claims of market manipulation.

The Legal Dispute

During a court hearing, lawyers for Jane Street argued that the trade logs provided by SEBI were heavily redacted. The firm has asked for more documents and internal emails to build its defense against the interim order. SEBI lawyer Gaurav Joshi said the regulator has shared details on trade timing, quantity, and pricing. Joshi added that SEBI withheld counterparty names and tax details, and is not legally required to hand over roughly 60 emails exchanged with the National Stock Exchange. Joshi noted that Jane Street bought stocks worth more than 43 billion rupees in the cash market over two hours and sold options worth over 320 billion rupees. SEBI states the firm dumped the shares shortly after to help its derivatives position.

Context

SEBI issued an interim order temporarily barring Jane Street from trading and asked the firm to deposit alleged unlawful gains of 48.4 billion rupees in an escrow account. Jane Street deposited the money but has not resumed trading in India, and the firm will present its rebuttal in court on Thursday.