Sebi chairman Tuhin Kanta Pandey on Monday downplayed broader market manipulation risks beyond the recent case involving hedge fund Jane Street, saying the regulator does not see “many other risks” of similar nature.

Speaking to reporters after Sebi barred Jane Street from accessing Indian markets and impounded over ₹4,843 crore in profits, Pandey said the episode was primarily a surveillance issue. He noted that the regulator is now focused on strengthening its surveillance and enforcement mechanisms.

What happened in the Jane Street matter was “basically” a surveillance issue, and the regulator is upping its focus on the aspect just because of that, Pandey said. Stressing that the action being taken against Jane Street is within the confines of the regulatory powers that exist, the Sebi chief suggested that it is not regulatory powers but better surveillance and enforcement that can help act against any wrongdoers.

Jane Street, a New York-based hedge fund, was found guilty of manipulating market indices by taking simultaneous positions in the cash and derivatives segments. Sebi’s probe revealed that the fund made a net profit of ₹36,671 crore between January 2023 and May 2025.

Losses unabated

The capital market regulator on Monday said that an analysis of the profit and loss of individual traders in the equity derivatives segment suggests that at the aggregate level, nearly 91 per cent of individual traders have incurred a net loss in FY25, with a similar trend observed in FY24. In absolute numbers, the net losses of individual traders widened by 41 per cent to ₹1.06 lakh crore in FY25.

The number of traders during FY25 was 96 lakh, up 11 per cent from 86.3 lakh in FY24.

Proxy advice

Retail investors will be able to directly access recommendations from registered proxy advisory firms on corporate resolutions at the time of electronic voting through the mobile applications of depositories CDSL and NSDL.

Pandey said this will improve investor empowerment and ease of access.

“Today, we are taking a new initiative to provide the proxy advisory recommendations feature integrated within the unified investor app of depositories. With this move, retail investors can not only cast their votes easily but also access the recommendations of registered proxy advisers in respect of resolutions proposed by the companies,” said Pandey.

“While the system will provide investors an additional option of voting according to the selected proxy adviser’s recommendation, it will give full control to them to modify any of the recommendation on any resolution before submission of their vote,” he said.

Expanding business

Sebi on Monday floated a consultation paper regarding a review of section 24 of Sebi (Mutual Funds) Regulations, expanding the scope of business of asset management companies (AMC), while directing them to ringfence such activities through subsidiaries.

With respect to an industry request of allowing AMCs to act as global distributors
of funds, the paper said: “For marketing and selling direct plans of the mutual fund schemes, AMCs may continue to be allowed to register as distributor through an overseas subsidiary.

“However, AMCs may be required to ensure that no commission or fees is received for such distribution of direct plans of mutual funds schemes of the AMCs.”

The paper further said that AMCs may be allowed to distribute funds other than mutual fund schemes through their subsidiary, provided such distribution and fund management activities are regulated by a foreign regulator/jurisdiction and are in compliance with the regulatory framework specified by such foreign regulator/jurisdiction.