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SEBI’s Jane Street Probe: A Case of Persistent Complaints and Data Gaps?

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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 Honโ€™ble 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 departmentโ€™s 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 โ€œ๐˜Œ๐˜ข๐˜ณ๐˜ญ๐˜ช๐˜ฆ๐˜ณ ๐˜ฅ๐˜ฆ๐˜ต๐˜ฆ๐˜ณ๐˜ฎ๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ๐˜ด, ๐˜ธ๐˜ฉ๐˜ฆ๐˜ต๐˜ฉ๐˜ฆ๐˜ณ ๐˜ง๐˜ข๐˜ท๐˜ฐ๐˜ถ๐˜ณ๐˜ข๐˜ฃ๐˜ญ๐˜ฆ ๐˜ฐ๐˜ณ ๐˜ข๐˜ฅ๐˜ท๐˜ฆ๐˜ณ๐˜ด๐˜ฆ, ๐˜ข๐˜ณ๐˜ฆ ๐˜ด๐˜ฆ๐˜ต ๐˜ข๐˜ด๐˜ช๐˜ฅ๐˜ฆ ๐˜ช๐˜ฏ ๐˜ง๐˜ข๐˜ท๐˜ฐ๐˜ถ๐˜ณ ๐˜ฐ๐˜ง ๐˜ข๐˜ฏ ๐˜ช๐˜ฏ๐˜ฅ๐˜ฆ๐˜ฑ๐˜ฆ๐˜ฏ๐˜ฅ๐˜ฆ๐˜ฏ๐˜ต ๐˜ช๐˜ฏ๐˜ท๐˜ฆ๐˜ด๐˜ต๐˜ช๐˜จ๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ.โ€

Followers would benefit from a close study of Section 11C of the SEBI Act, 1992, with particular attention to the phrase โ€œreason 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 SATโ€™s proceedings will be important in examining the procedural aspects and the evidence that led to SEBIโ€™s 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

SEBI ramped up Jane Street probe due to inadequate data, continued complaints, say sources

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