The Securities and Exchange Board of India (SEBI), the country’s market regulator, told a local court that it had shared with Jane Street Group LLC the trade logs it relied on for its preliminary order against the Wall Street trading firm, urging the company to respond to the allegations of market manipulation, Bloomberg reported.
Jane Street has been seeking additional documents and internal emails from the regulator to mount its defence against the interim order. At Monday’s hearing, of manipulating index prices and then profiting from options trading.
Gaurav Joshi, a lawyer representing the Securities and Exchange Board of India, said the regulator had provided details of the time, quantity and pricing of actual trades. SEBI has withheld the names and tax identification details of counterparties and will not share additional information because it did not base the probe on those records, Joshi said.
Until Monday, Jane Street’s lawyer had argued that most of the information in the trade logs was redacted, as per the report.
The report said that the trades are central to the regulator’s allegation that Jane Street influenced the pricing of stocks in the NSE Nifty Bank Index, a closely watched benchmark that serves as the foundation for heavily traded options contracts.
The outcome of the dispute could shape global trading firms’ perception of how high-frequency traders would be regulated in one of the world’s largest derivatives market.
What will the court consider next?
Jane Street has sought details of as many as 60 emails exchanged between SEBI and the NSE, Joshi said. The regulator is not legally bound to furnish this information even after the probe, he said. SEBI had previously said that such communication could be considered by the court after the investigation is completed, as per Bloomberg.
At some stage, the court has to put a stop to these requests for documents, Joshi said, concluding his arguments. Jane Street will present its rebuttal on Thursday.
The report said that Joshi, earlier this week, argued that the Wall Street trader purchased stocks worth more than 43 billion rupees ($444 million) in the cash market over two hours and simultaneously sold options worth over 320 billion rupees.
Within a few hours, Jane Street dumped the shares, which benefited its derivatives position, SEBI said, citing this as evidence of an intent to manipulate the market.
The regulator’s interim order of July 2025 had temporarily barred Jane Street from trading and asked it to deposit alleged unlawful gains of 48.4 billion rupees in an escrow account. While the firm deposited the amount, it has not resumed trading in India yet.