Mumbai: Jane Street has written to the Securities and Exchange Board of India (Sebi) seeking more time to respond to the market regulator’s allegations that it engaged in market manipulation in the local derivatives market.
“We are engaging constructively with Sebi and have sought an extension to respond to the interim order issued on July 3,” Jane Street said in a statement on Monday. The Wall Street major didn’t reveal in the statement how much time it has sought to respond to the regulator. But market sources close to the development said the trading firm has also sought inspection of documents relied upon as evidence by the regulator while it passed the 105-page order early July.
Sebi had asked Jane Street to respond within 21 days to its interim ex-parte order. The deadline ended last week.
“Jane Street is committed to conduct that upholds the integrity of India’s capital markets and contributes to their continued development,” the firm said.
Earlier this month, Sebi had barred Jane Street from accessing the securities market for allegedly manipulating stock indices through large derivative positions mostly on the Bank Nifty. It had also directed it to return ₹4,844 crore of ‘unlawful gains’ from the allegedly manipulated trades.
Within a few days after the order, the firm complied with the directions and deposited the amount in an escrow account. Following which, its trading ban was lifted by the regulator.
“We take pride in the role we serve in markets around the world, and it’s painful to have our firm’s reputation tarnished by a report based on so many erroneous and unsupported assertions,” Jane Street told its staff on July 6.
