Regulatory Clarity: Former SEBI Chair Defends Actions on Jane Street Case

Former SEBI Chairperson Madhabi Puri Buch has denied allegations of regulatory failure regarding the Jane Street matter. Buch emphasized Sebi's proactive measures since April 2024 in addressing market manipulation accusations against Jane Street. The case led to significant penalties and market access restrictions for the hedge fund.

Former SEBI Chairperson Madhabi Puri Buch addressed media allegations suggesting regulatory oversight failures pertaining to the Jane Street issue. In a statement on Tuesday, she detailed the steps taken by SEBI since April 2024 to counteract the alleged market manipulation by New York-based hedge fund Jane Street.

Buch emphatically dismissed the narrative of regulatory inadequacy, underscoring SEBI's prompt and systematic approach that included the issuing of circulars and caution letters from April 2024 to February 2025. The measures culminated with SEBI instructing the National Stock Exchange (NSE) to issue a cease and desist order to the hedge fund.

Market analysts observe that investigations by SEBI typically span over a year, and the active probe resulted in suspending Jane Street from the market, along with the seizure of illegitimate gains totaling over Rs 4,843 crore. This move illustrates SEBI's commitment to maintain fairness and transparency within the capital markets.