New Delhi, Oct. 6 -- The Securities and Exchange Board of India said Tuesday trading giant Jane Street's Indian units were asking for an "absurd" amount of data and documentation to delay the proceedings, and asked the Securities Appellate Tribunal to come down heavily on any entity that uses such methods.

With these tactics, Jane Street's Indian units had managed to delay the proceedings by one and a half years, said Gaurav Joshi, senior advocate representing SEBI at a SAT hearing on the matter involving JSI Investment Pvt Ltd and others. Jane Street entities had filed an appeal before SAT challenging the "inspection of documents" provided by SEBI. The appeal does not challenge SEBI's interim order issued in June 2025.

Joshi listed the kind of documents to illustrate the "absurdity" of what Jane Street entities were asking. These included transcripts of calls SEBI officials had with officials of the National Stock Exchange and Jane Street, draft versions of various documents, emails exchanged between various regulators, and documents related to SEBI's policymaking particularly minutes of the meetings that led to the regulator's October 2024 directive to strengthen equity index derivatives trading.

"This is a party which has used obstruction tactics all along," said Joshi, and added that SEBI is not required to give this amount of data to an entity being investigated at this stage. Joshi reiterated that this matter was still being investigated and that the regulator had not passed a show-cause notice or an adjudicatory order.

On July 3, 2025, SEBI had passed an interim order asking four Jane Street entities-JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd and Jane Street Asia Trading Ltd-to deposit over Rs 4,800 crore, which was the regulator's estimate of possible unlawful gains the entities had made through market manipulation.

The order had added that if the entities were "able to submit justiciable reasons that counter the prima facie conclusions" the directions in the interim order may be revoked, and that if the investigation showsJS Group had not engaged in market manipulation, the amount impounded would be released.

The JS Group entities have not filed a reply to the interim order to date, said Joshi, adding that SEBI has already given Jane Street 10 GB of data.

Through the interim order, SEBI had restrained the entities from accessing the Indian markets and liquidating their assets. These bans were lifted later after the entities deposited the amount in an escrow account.

Putting SEBI on trial

Joshi said that, when SEBI asked Jane Street to explain their conduct and how their trades didn't amount to market manipulation, the trading firm was instead asking SEBI to explain the regulatory actions.

"They are alleging malafide conduct on the part of SEBI, without actually saying so," he said.

He said that SAT's decision on this matter is crucial since entities under investigation could use such dilatory tactics to endlessly prolong the regulator's proceedings on procedural grounds.

The tribunal is still hearing the matter. The next hearing is on Wednesday.

Published by HT Digital Content Services with permission from VC Circle.