SEBI Chairperson warns against market manipulation

The Chairperson of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, emphasized the zero-tolerance policy towards market manipulation during a media briefing in Mumbai. This statement comes in the wake of regulatory action taken against US-based trading entity Jane Street and its affiliated companies.

Pandey reinforced the importance of transparency in disclosing related party transactions, managing conflicts of interest, and timely reporting of material developments during an event hosted by the Bombay Chartered Accountants Society. He highlighted the crucial role of Chartered Accountants in upholding corporate governance standards, emphasizing that it should not be reduced to a mere checklist but rather an essential component of ethical business conduct.

According to SEBI’s directive, Jane Street and its related entities have been prohibited from accessing the market and ordered to deposit illegal gains totaling Rs 4,843.5 crore in favor of the regulator. The enforcement action aimed to curb market manipulation and ensure fair practices within the financial markets. Furthermore, a debit freeze has been imposed on the bank accounts of the entities involved, including JSI2 Investments Private Ltd, Jane Street Singapore Pte. Ltd, and Jane Street Asia Trading Ltd.

SEBI’s order highlighted that Jane Street had accrued profits amounting to Rs 43,289.33 crore through trading in index options on Indian exchanges between January 1, 2023, and March 31, 2025. The regulatory action extends to all Jane Street Group entities operating in India, prohibiting them from engaging in any market-related activities until further notice.

Despite the regulatory intervention, Jane Street has raised objections to SEBI’s interim order and expressed its intent to engage further with the regulator to address the discrepancies. This incident underscores SEBI’s commitment to ensuring market integrity and preventing activities that undermine the sanctity of financial markets.

In conclusion, SEBI’s stringent measures against market manipulation serve as a stern warning to entities engaging in unlawful practices. Upholding transparency, ethical conduct, and compliance with regulatory standards are imperative for all market participants to maintain a fair and efficient financial ecosystem. The regulatory environment will continue to evolve to deter and penalize any attempts to manipulate markets for personal gain.