Sebi acted swiftly in Jane Street case, no regulatory lapse, says former chair Madhabi Puri Buch

Madhabi Puri Buch Rebuts Claims of Regulatory Failure in Jane Street Case

Former Securities and Exchange Board of India (SEBI) Chairperson, Madhabi Puri Buch, has vehemently denied allegations of regulatory inaction in the high-profile Jane Street case. In a strongly worded statement, she detailed SEBI's proactive engagement with the matter, beginning as early as April 2024.

Key Actions Taken by SEBI (April 2024 - February 2025):

• Early Detection: SEBI identified index manipulation by Jane Street.
• Cease and Desist Order: A cease-and-desist instruction was issued to Jane Street.
• Data-Driven Investigation: A thorough examination of Jane Street's complex trading strategies and data was undertaken.
• Multi-Disciplinary Team: A dedicated team was formed to comprehensively analyze the situation.
• Policy Interventions: SEBI implemented policy level changes in October 2024.
• Collaboration with NSE: SEBI directed the National Stock Exchange (NSE) to issue a further cease-and-desist letter in February 2025.

Buch emphasized that the July 3, 2025 interim order issued by SEBI against Jane Street clearly outlines the chronological sequence of events. This demonstrates, she stated, SEBI's commitment to investigating the matter from its inception.

Dispelling Misinformation:

Buch expressed her disappointment with media reports suggesting regulatory failure. She stated, "It is extremely unfortunate that certain sections of the media are choosing to ignore these facts and seeking to create a false narrative."

The Outcome:

SEBI's actions ultimately resulted in Jane Street, a US-based proprietary trading firm, being barred from Indian markets and the impounding of ₹4,843 crore in alleged unlawful gains due to manipulative trading practices.

Buch's tenure as SEBI Chairperson concluded in February 2025, with Tuhin Kanta Pandey assuming the role on March 1, 2025.

In conclusion, Buch's statement aims to set the record straight, asserting that SEBI acted decisively and promptly in addressing the complexities of the Jane Street case.