Jane Street representatives to appear before SEBI in September: Report

The market regulator had said that it found Jane Street guilty of manipulating Indian stock market indices by taking bets in cash, and futures and options markets simultaneously to make strong gains. In its order, SEBI detailed that Jane Street could resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until its investigation is complete.

Jane Street disputed SEBI's allegations. In a memo to its employees and reported by media, Jane Street noted that said Indian capital market regulator has a “misunderstanding" about a standard hedging practice.

Jane Street told its employees that SEBI made “many erroneous or unsupported assertions” about its trading activity in the country, and the firm intends to defend itself against the accusations including exploiting thin liquidity in the cash and futures segments to manipulate prices.

Later in July, SEBI allowed Jane Street to restart trading in Indian equities after it compiled with a key directive and deposited Rs 4,843.5 crore in an escrow account. Jane Street reportedly sought six more weeks from SEBI to prepare its defence against the market manipulations allegations, after the original deadline lapsed.