The Securities Appellate Tribunal (SAT) has ordered the Securities and Exchange Board of India (Sebi) to provide a formal response within three weeks explaining why it cannot disclose additional documents in the case against New York-based trading firm Jane Street.
The tribunal’s directive also included a pause on any personal hearings between Sebi and Jane Street until the next hearing on November 18, according to a Reuters report. This action effectively delays any potential final order from the regulator. Sebi had scheduled an internal hearing in the case for 15 September.
The SAT’s order stems from an appeal filed by Jane Street last week, which aimed to compel Sebi to release what the firm considers to be crucial documents needed to counter the allegations of market manipulation.
Jane Street’s appeal points to earlier probes, including a November 2024 review by the NSE and a December 2024 review by Sebi’s Integrated Surveillance Department, which reportedly found no evidence that the firm’s trades have influenced index prices to benefit its options positions.
In an interim order dated July 3, 2025, Sebi had barred the Jane Street Group from accessing the Indian securities market and directed the group entities to deposit the “unlawful gains” of ₹4,853.57 crore made by engaging in “illegal manipulation” of securities that comprised of Bank Nifty and Nifty indices.
Sebi subsequently lifted the trading ban on July 21 and allowed the company to resume trading after it deposited the mandated amount.
Sebi indicated that its investigation into Jane Street is at a critical and ongoing stage and that the scope of the investigation and the final order could be much broader.
The regulator also maintained that it will not release any documents that were not specifically used as a basis for its order.
At the core of the regulator’s concern was the system being gamed and losses
being incurred by indivdiual traders.
Sebi’s own research shows that 91 per cent of individual traders incurred net losses trading in futures and options in FY25, with their aggregate losses crossing ₹1
lakh crore.