Jane Street seeks more time to respond to Sebi interim order

Jane Street seeks more time to respond to Sebi interim order

US high frequency trading firm Jane Street has sought more time from Indian market regulator Securities and Exchange Board of India (Sebi). In a statement to Moneycontrol on Monday evening, Jane Street Group said “We are engaging constructively with SEBI and have sought an extension to respond to the interim order issued on July 3.”

In its July 3 interim order, Sebi had given 21 days to reply. It seems the extension has been sought after expiry of this timeline. Jane Street did not disclose how much extension in timeline it has sought to respond to Sebi’s queries.

In the same statement Jane Street assured that the group is committed to the integrity of market. The statement further said, : Jane Street is committed to conduct that upholds the integrity of India’s capital markets and contributes to their continued development.”

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Sebi, in its July 3 order, had alleged that Jane Street Group manipulated the trades on Bank Nifty and Nifty Index Options and made an illegal gain of Rs 4,843.5 crore as per the preliminary investigation. Sebi directed Jane Street Group to impound and deposit the alleged illegal gains in an interest-bearing escrow account with lien marked in favour of Sebi.

Jane Street complied with the Sebi directions on impounding of alleged illegal gains on July 11. Later, On July 21, Sebi lifted the restrictions on Janes Street's trading in Indian markets, subject to conditions that it will not manipulate and exchanges will have a hawk eye on the trades of Jane Street Group.

Also read: Jane Street allowed to trade with conditions and strong monitoring by exchanges

Also read: Back in the game: Jane Street deposits Rs 4,843.5 crore as directed by Sebi, can trade again

Sebi statement issued on July 21 noted the entities have been directed to cease and desist from directly or indirectly engaging in any fraudulent, manipulative or unfair trade practice or undertaking any activity, either directly or indirectly, that may be in  breach  of  extant regulations, including by dealing in securities using any of the patterns identified or alluded to in the interim order. The entities have confirmed that they will comply with this.

Stock exchanges were directed to closely monitor any future dealings and positions of Jane Street Group on an ongoing basis. So that entities do not either directly or indirectly indulge in any kind of manipulative activity, including by dealing in securities using any of the patterns identified or alluded to in the interim order, till the completion of the investigation by SEBI and the consequent proceedings, if any.

Jane Street Group had earlier denied the allegations of Sebi and said its trading strategy has been misunderstood by the Indian capital market regulator.