Jane Street Files Legal Challenge Against SEBI Over ₹4,843 Crore Trading Ban
US-based trading firm denies market manipulation, demands full access to SEBI’s evidence in Bank Nifty case
US-headquartered trading firm Jane Street has filed a petition with the Securities Appellate Tribunal (SAT) against India’s market regulator, the Securities and Exchange Board of India (SEBI), following a trading ban and allegations of index manipulation involving the Bank Nifty.
The petition, filed on September 3, challenges SEBI’s interim order from July that barred Jane Street from participating in Indian markets and froze approximately ₹4,843 crore in alleged unlawful gains. Jane Street has requested the tribunal to direct SEBI to disclose all relevant investigative materials and to stay further proceedings until such disclosure is made.
According to SEBI’s order, Jane Street allegedly manipulated the Bank Nifty index by placing large buy orders in the cash and futures markets during early trading hours, artificially inflating the index, and subsequently profiting from short positions in derivatives. The regulator termed the strategy “distortionary” and said it misled other market participants.
Jane Street, however, has denied any wrongdoing and described its trading activity as legitimate index arbitrage, a strategy commonly employed by market makers. The firm argued that it acted in accordance with standard market practices and did not engage in any form of manipulation.
In its filing, Jane Street contends that earlier assessments conducted by SEBI’s own Integrated Surveillance Department and the National Stock Exchange (NSE) in 2024 had cleared the firm in the majority of trading sessions under review. The company claims that these findings were not referenced in SEBI’s recent order, raising questions about procedural fairness.
The firm is now seeking access to SEBI’s internal surveillance reports, communications with the NSE, raw trade data, and copies of complaints or other materials used to support the allegations.
Jane Street has argued that the absence of access to these documents has hindered its ability to present a proper defence and violates principles of natural justice. If SEBI’s allegations are upheld, Jane Street could face penalties up to three times the amount of the alleged illegal gains, potentially totaling nearly ₹15,000 crore (US $1.7 billion). The case has attracted significant attention from global market participants and legal experts, who view it as a test of India’s regulatory transparency and its treatment of foreign institutional participants.
The SAT is scheduled to hear the case on September 8, 2025.