Bengaluru: In a significant legal development, an Indian tribunal has directed the Securities and Exchange Board of India (SEBI) to respond promptly to an appeal filed by global trading firm Jane Street, temporarily halting related proceedings. The order from the Securities Appellate Tribunal (SAT) comes in the midst of a high-stakes dispute over SEBI’s allegations of market manipulation concerning the Bank Nifty index.
Jane Street, a U.S.-based high-frequency trading firm, has been contesting a regulatory decision that imposed a temporary ban and a substantial monetary penalty of $567 million in July 2025. The firm argued that SEBI had refused to provide critical documents necessary to mount an effective defense, prompting the appeal before SAT. The tribunal has now asked SEBI to furnish a response within three weeks and suspended any personal hearings until the next scheduled session in November, effectively delaying any final ruling.
The tribunal’s intervention reflects a growing emphasis on fairness and transparency in regulatory proceedings, particularly for foreign entities operating within India’s financial markets. By temporarily halting SEBI’s actions, the SAT has ensured that Jane Street retains the ability to fully access information and participate in hearings, reinforcing the principle that due process must accompany regulatory enforcement.
SEBI, however, has maintained that the investigation into alleged trading irregularities remains ongoing, and it has sought to limit the disclosure of documents deemed not essential to forming its regulatory judgment. Jane Street’s legal team has countered that access to all relevant materials is vital for understanding the context of the regulator’s findings and mounting a proper defense.
Market observers note that the outcome of this legal confrontation could have broader implications for India’s financial regulatory framework. It may establish precedents for how regulators balance investigative confidentiality with the rights of foreign firms and how tribunals oversee appeals in complex securities cases.
As proceedings continue, the case is being closely watched by both domestic and international stakeholders, with potential ramifications for market conduct, regulatory transparency, and investor confidence in India’s rapidly evolving securities ecosystem.