Jane Street ban: US trading firm barred by SEBI from accessing India’s securities market; case relates to alleged index manipulation

US trading firm Jane Street has been barred by Indian market regulator, the Securities and Exchange Board of India (SEBI), from domestic markets. The ban follows an investigation into suspected manipulation through equity derivatives positions.SEBI issued an interim directive on July 3 on its official website, stating that Jane Street would be banned from participating in the country’s securities market.“Entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly,” the SEBI notice said with reference to Jane Street order.The regulatory body has also decided to recover 48.4 billion rupees ($566.71 million) from Jane Street, which SEBI claims were obtained through alleged improper practices, according to a Reuters report.In response to the SEBI ban, Jane Street denied the charges. “Jane Street disputes the findings of the SEBI interim order and will further engage with the regulator. Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world,” the firm responded via email according to the Reuters report.SEBI’s regulatory action comes at a time when several international trading companies, including Citadel Securities, IMC Trading, Millennium, and Optiver, are expanding their operations in India’s flourishing derivatives markets.The regulatory body confirmed that it would continue to keep an eye on Jane Street’s activities on current positions whilst its investigation remains ongoing.