Indian Court Demands SEBI Clarification on Jane Street Document Access

An Indian court has instructed the Securities and Exchange Board of India (SEBI) to provide a justification within three weeks for not sharing additional documents with the U.S. algorithmic trading firm Jane Street. The company, banned in July over index manipulation allegations, is seeking further documentation to challenge the interim findings.

The Securities Appellate Tribunal's order effectively delays any personal hearings, pushing a potential confirmatory ruling by SEBI beyond the November 18 hearing date. This development pauses SEBI's process, which mandates hearings before passing orders, hence prolonging the legal tussle.

SEBI suspended Jane Street from trading on July 4, citing index manipulation. However, Jane Street denies the charge and questions contradictory findings by SEBI's surveillance department, which found no basis for further probes. Despite the resolution allowing trading resumption, Jane Street has opted not to trade amid ongoing reputational concerns noted by the firm.

(With inputs from agencies.)