Al Jazeera Media Network has featured Mr. Sumit Agrawal of Regstreet Law Advisors and former SEBI officer, in its recent in-depth report covering SEBI’s interim action against global trading firm Jane Street Group.
The case has garnered international attention given the scale of allegations involving suspected market manipulation in BANKNIFTY options, a freeze on ₹48.43 billion (approximately USD 570 million), and heightened concerns around the protection of retail investors.
Speaking to Al Jazeera Media Network, Mr. Agrawal shared insights on the regulatory and legal process, including evidentiary thresholds and timelines typically involved in such cases:
“𝘚𝘶𝘤𝘩 𝘱𝘳𝘰𝘤𝘦𝘴𝘴𝘦𝘴 𝘵𝘺𝘱𝘪𝘤𝘢𝘭𝘭𝘺 𝘵𝘢𝘬𝘦 𝘦𝘪𝘨𝘩𝘵 𝘵𝘰 24 𝘮𝘰𝘯𝘵𝘩𝘴,” he noted, particularly in “𝘤𝘰𝘮𝘱𝘭𝘦𝘹 𝘮𝘢𝘯𝘪𝘱𝘶𝘭𝘢𝘵𝘪𝘰𝘯 𝘤𝘢𝘴𝘦𝘴.”
Commenting on SEBI’s evidentiary burden to prove intent, Mr. Agrawal explained: “𝘑𝘢𝘯𝘦 𝘚𝘵𝘳𝘦𝘦𝘵 𝘤𝘢𝘯 𝘢𝘳𝘨𝘶𝘦 𝘪𝘵𝘴 𝘦𝘹𝘱𝘪𝘳𝘺 𝘥𝘢𝘺 𝘵𝘳𝘢𝘥𝘦𝘴 𝘸𝘦𝘳𝘦 𝘭𝘦𝘨𝘪𝘵𝘪𝘮𝘢𝘵𝘦 𝘪𝘯𝘥𝘦𝘹 𝘢𝘳𝘣𝘪𝘵𝘳𝘢𝘨𝘦 𝘳𝘦𝘤𝘰𝘨𝘯𝘪𝘴𝘦𝘥 𝘣𝘺 𝘳𝘦𝘨𝘶𝘭𝘢𝘵𝘰𝘳𝘴, 𝘮𝘢𝘬𝘪𝘯𝘨 𝘢 𝘮𝘢𝘯𝘪𝘱𝘶𝘭𝘢𝘵𝘪𝘰𝘯 𝘧𝘪𝘯𝘥𝘪𝘯𝘨 𝘥𝘪𝘧𝘧𝘪𝘤𝘶𝘭𝘵 𝘸𝘪𝘵𝘩𝘰𝘶𝘵 𝘤𝘭𝘦𝘢𝘳 𝘪𝘯𝘵𝘦𝘯𝘵 𝘦𝘷𝘪𝘥𝘦𝘯𝘤𝘦.”
He also pointed to SEBI’s own acknowledgment of the risks involved: “𝘚𝘌𝘉𝘐’𝘴 2024 𝘤𝘰𝘯𝘴𝘶𝘭𝘵𝘢𝘵𝘪𝘰𝘯𝘴 𝘧𝘭𝘢𝘨𝘨𝘦𝘥 𝘦𝘹𝘱𝘪𝘳𝘺 𝘥𝘢𝘺 𝘰𝘱𝘵𝘪𝘰𝘯𝘴 𝘢𝘴 𝘩𝘪𝘨𝘩𝘭𝘺 𝘴𝘱𝘦𝘤𝘶𝘭𝘢𝘵𝘪𝘷𝘦 𝘢𝘯𝘥 𝘷𝘰𝘭𝘢𝘵𝘪𝘭𝘦.”
On the broader regulatory response, Mr. Agrawal remarked that SEBI’s recent measures, including tighter spreads, restrictions on weekly expiries, and higher margins, signal a “𝘱𝘶𝘴𝘩 𝘧𝘰𝘳 𝘨𝘳𝘦𝘢𝘵𝘦𝘳 𝘱𝘳𝘰𝘵𝘦𝘤𝘵𝘪𝘰𝘯” of retail participants in the market.
The Al Jazeera Media Network article highlights the growing scrutiny on algorithmic and expiry-day trading practices and underscores the regulatory challenges in cross-border financial enforcement.
Following SEBI’s recent press release on Jane Street’s compliance with the interim order (https://lnkd.in/gxpgJHzB), media commentary continues to speculate on potential regulatory leniency. However, there is no public order available on SEBI website.
This case is a textbook example of the tension between law and regulation.
The full article is available at https://lnkd.in/gR6Ks8Ex
Securities and capital markets professionals are welcome to share their perspectives at info@regstreetlaw.com.
