Jane Street, a US-based hedge fund, told the Securities Appellate Tribunal (SAT) that both the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE) found no signs of market manipulation in its trades. The next hearing in this case is set for October 5, 2026, according to a report by Moneycontrol.
Key Details
The hedge fund's legal team argued that two studies by SEBI and NSE in 2024 cleared Jane Street of any wrongdoing. However, SEBI later formed a team in December 2024 to further investigate similar trades. Jane Street's lawyer said that the communication between SEBI and NSE about these studies is key for the hedge fund's defense against ongoing claims.
Background
In July 2025, SEBI issued an interim order that barred Jane Street from trading in the Indian market. The regulator also ordered the firm to return ₹4,843 crore, claiming that Jane Street's trading strategies distorted the Bank Nifty index and harmed retail investors. SEBI accused the hedge fund of buying large amounts of Bank Nifty stocks to artificially support the index while also taking short positions in index options. Jane Street argued that the NSE report looked at 16 months of trades, while SEBI's Integrated Surveillance Department (ISD) reviewed 17 months, both finding no signs of manipulation.
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This ongoing legal battle could affect how investors view hedge funds operating in India, especially those involved in index trading strategies. The situation may lead to more scrutiny of trading practices and regulatory actions in the Indian market. The outcome of the next hearing on October 5 could influence future regulatory actions and market trends.
Based on reporting by: moneycontrol.com, livemint.com