Jane Street accuses Sebi of shifting goalposts in manipulation case

Jane Street has accused the Securities and Exchange Board of India (Sebi) of altering the parameters of its investigation into alleged market manipulation, seeking access to detailed order logs and counterparty details needed to defend itself against the charges.

The trading firm's request comes as it prepares its response to Sebi's case, arguing that the regulator has not provided sufficient information for a meaningful defense. Jane Street contends that without these operational records, it cannot adequately address the specific allegations leveled against it.

Sebi has pushed back on these demands, asserting that it has already disclosed all material evidence and documentation relied upon in building its case against the firm. The regulator's position suggests it considers the current disclosure adequate for the proceedings.

The dispute reflects growing tensions in the matter, with Jane Street essentially claiming that Sebi has shifted its investigative focus or expanded its scope after initial disclosures, making it difficult for the firm to respond comprehensively. The case is being heard before the Securities Appellate Tribunal (SAT), which will ultimately assess whether Jane Street's demands for additional documentation are justified or if Sebi's disclosure stance is sufficient under regulatory guidelines.

The outcome could have implications for how market regulators balance transparency obligations with investigative confidentiality in future enforcement actions.