The Hindu, has published a detailed article originating from The Reuters, revealing that SEBI initiated a formal investigation into Jane Street Group despite its own surveillance department initially recommending otherwise, due to continued complaints and concerns over inadequate data.
The case, which involves a $567 million disgorgement amount for alleged market manipulation as per the SEBI Interim Order dated July 03, 2025, has now moved to the Honโble Securities Appellate Tribunal, with Jane Street appealing for greater transparency into the regulator’s decision-making process. In its appeal, Jane Street has sought relevant documents from SEBI, questioning why the regulator reversed its surveillance departmentโs stance and requesting copies of the complaints that fueled the formal investigation. The Appeal before the SAT will be heard on September 09, 2025.
In this context, Mr. Sumit Agrawal, Founder of Regstreet Law Advisors & former SEBI Officer, provides his insight and has stated that once a formal investigation is initiated any prior conclusions lose their weight, and the process begins anew. He is of the view that โ๐๐ข๐ณ๐ญ๐ช๐ฆ๐ณ ๐ฅ๐ฆ๐ต๐ฆ๐ณ๐ฎ๐ช๐ฏ๐ข๐ต๐ช๐ฐ๐ฏ๐ด, ๐ธ๐ฉ๐ฆ๐ต๐ฉ๐ฆ๐ณ ๐ง๐ข๐ท๐ฐ๐ถ๐ณ๐ข๐ฃ๐ญ๐ฆ ๐ฐ๐ณ ๐ข๐ฅ๐ท๐ฆ๐ณ๐ด๐ฆ, ๐ข๐ณ๐ฆ ๐ด๐ฆ๐ต ๐ข๐ด๐ช๐ฅ๐ฆ ๐ช๐ฏ ๐ง๐ข๐ท๐ฐ๐ถ๐ณ ๐ฐ๐ง ๐ข๐ฏ ๐ช๐ฏ๐ฅ๐ฆ๐ฑ๐ฆ๐ฏ๐ฅ๐ฆ๐ฏ๐ต ๐ช๐ฏ๐ท๐ฆ๐ด๐ต๐ช๐จ๐ข๐ต๐ช๐ฐ๐ฏ.โ
Followers would benefit from a close study of Section 11C of the SEBI Act, 1992, with particular attention to the phrase โreason to believeโ in the context of appointing an investigating authority. Judicial interpretations on the extent of disclosure required in this regard have been non-uniform. It would be instructive to compare these interpretations with the standards adopted by other enforcement bodies and regulators in India, such as the Competition Commission of India, and also with international practices, including those of the U.S. SEC.
The SATโs proceedings will be important in examining the procedural aspects and the evidence that led to SEBIโs decisive action.
The full article by The Hindu is available here:ย https://lnkd.in/diG2kfek Readers are welcome to share their views with Regstreet Law Advisors on info@regstreetlaw.com
SEBI ramped up Jane Street probe due to inadequate data, continued complaints, say sources