Will SEBI Stand Firm Against Market Manipulation?
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Synopsis
SEBI Chairperson Tuhin Kanta Pandey affirmed a zero-tolerance policy towards market manipulation, particularly in light of Jane Street's recent ban. This bold stance aims to enhance market integrity, making it essential for stakeholders to adhere to transparency and governance principles.
Key Takeaways
- SEBI is intensifying its efforts against market manipulation.
- Transparency in corporate governance is crucial.
- Jane Street has been barred from market access.
- Significant illegal gains have been identified.
- Compliance should not overwhelm businesses.
Mumbai, July 5 (NationPress) The Chairperson of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, declared on Saturday that the regulatory body will be uncompromising regarding market manipulation. This statement came shortly after the US trading firm Jane Street and three of its associated entities were prohibited from market access.
During a media interaction, the SEBI head emphasized that the capital markets authority has intensified its surveillance against such illicit activities. He stated, “Market manipulation will not be tolerated.”
Speaking at an event hosted by the Bombay Chartered Accountants Society, Pandey stressed that ensuring transparency in related party transactions, managing conflicts of interest, and timely reporting of significant developments are essential responsibilities for chartered accountants.
“You must ensure that corporate governance is not merely a checklist exercise,” he remarked, noting that excessive compliance can create a substantial burden and expressing a desire for achieving better outcomes with reduced compliance.
SEBI has barred Jane Street and its three related entities from participating in the market, demanding that they deposit illegal earnings amounting to Rs 4,843.5 crore into an account designated for the market regulator.
Additionally, the regulator mandated a debit freeze on the bank accounts of these entities, including JSI2 Investments Private Ltd, Jane Street Singapore Pte. Ltd, and Jane Street Asia Trading Ltd. According to SEBI's order, Jane Street accrued Rs 43,289.33 crore in profits from trading in index options on Indian exchanges from January 1, 2023, to March 31, 2025.
This order is part of the enforcement actions taken by the market regulator and affects all entities of the Jane Street Group operating in India, curtailing their ability to trade or engage in any market-related activities.
Jane Street has contested the findings of SEBI's interim order and indicated plans to further engage with the regulatory body.
Point of View
SEBI's rigorous stance against market manipulation reflects its commitment to maintaining the integrity of financial markets. This move is crucial for restoring investor confidence and ensuring fair trading practices, aligning with the nation’s broader economic goals.
NationPress
17/07/2025
Frequently Asked Questions
What actions has SEBI recently taken against Jane Street?
SEBI has barred Jane Street and its related entities from accessing the market and mandated them to deposit illegal gains of Rs 4,843.5 crore.
What is SEBI's stance on market manipulation?
SEBI Chairperson Tuhin Kanta Pandey stated that the regulator will not tolerate any market manipulation and has increased surveillance to combat these practices.
What are the responsibilities of chartered accountants according to SEBI?
Chartered accountants must ensure transparency in related party transactions, manage conflicts of interest, and report significant developments in a timely manner.
How much profit did Jane Street earn through index options trading?
Jane Street reportedly earned Rs 43,289.33 crore in profits from trading in index options on Indian exchanges between January 1, 2023, and March 31, 2025.
Is Jane Street contesting SEBI's findings?
Yes, Jane Street has disputed the findings of SEBI's interim order and plans to further engage with the regulator.
