A hearing will commence today in the Appeals Court before a three-judge bench concerning the dispute between Jane Street and SEBI. Jane Street has appealed against SEBI's interim order and is seeking a halt to the investigation. This matter is considered significant for India's high-speed equity derivatives market and could impact other trading firms.
Jane Street vs SEBI: A hearing is set to begin today in the Appeals Court before a three-judge bench regarding the dispute between American trading firm Jane Street and the Indian market regulator, SEBI. Jane Street has filed an appeal against SEBI's interim order from July 2025, which accuses the firm of market manipulation. The company has requested access to necessary documents for its defense and has sought a stay on SEBI's actions until the conclusion of the hearing. This case is likely to prove important for India's high-speed derivatives market and other foreign trading firms.
What is the Case?
In July 2025, SEBI issued an interim order against Jane Street. This order accused the American trading company of manipulation and unfairly profiting from the market. Jane Street has filed an appeal against this order. Jane Street claims that SEBI has not provided it with the necessary documents for its defense.
The company has requested the court to stay SEBI's actions until the hearing is completed. If this request is granted, Jane Street could receive interim relief, and SEBI would have to adhere to certain restrictions during the investigation.
What to Expect in Today's Hearing
The first hearing typically involves setting a roadmap for the proceedings. During this session, the court may decide whether SEBI is required to respond to Jane Street's appeal. According to Abhiraj Arora, Partner at the Mumbai-based law firm Saraf & Partners, the primary focus for both parties at present is interim relief.
If the tribunal grants interim relief to Jane Street, SEBI's actions will be temporarily suspended. Additionally, the court may also decide which documents should be provided to Jane Street.
What Documents Has Jane Street Requested?
Jane Street has requested various documents, including emails exchanged between SEBI and Dubai-based hedge fund manager Mayank Bansal. The company contends that these emails and communications were involved in providing information about the American firm's trading activities in India to SEBI. Furthermore, Jane Street has also sought access to internal emails with the NSE.
Jane Street argues that these documents were withheld, being deemed irrelevant to the investigation. The company asserts that these documents are crucial for its defense.
SEBI's New Order
SEBI states that its surveillance team had already reviewed Jane Street's trading activities. A review conducted in December 2024 found no evidence of manipulation. The NSE had also reached a similar conclusion.
Akshaya Bhansali, Managing Partner at Mindsprite Legal, suggests that SEBI might also argue that its interim order is unrelated to the NSE's report. Furthermore, SEBI could contend that the review of internal communications conducted earlier in the year is separate from the new order.
Impact on the Market
The market is closely watching this case because India's derivatives market has become attractive to high-speed trading firms. Whether Jane Street receives interim relief or not could influence the strategies of other firms such as Jump Trading, Citadel Securities, and IMC Trading.
According to SEBI's report, retail traders incurred approximately $1200 in losses in futures and options trading during FY2025, with the profits primarily benefiting trading firms. The resolution of this dispute is considered crucial for market confidence and regulatory clarity.
