SEBI chief says Jane Street ban proves power

New Delhi

SEBI Chairman Tuhin Kanta Pandey has said that the recent ban on Jane Street shows that SEBI has enough power to act against market manipulation without needing more rules. On Monday, Pandey explained that the real need is better enforcement and monitoring rather than adding new regulations.

“The Jane Street case speaks for itself,” Pandey stated. He pointed out that SEBI acted strictly within its existing rules to stop Jane Street, a major trading firm based in New York, from operating in India. He added, “Excess regulations do not mean excess regulation. It’s enforcement and surveillance that help most.”

Jane Street was banned from the Indian stock market for using manipulative trading methods to earn illegal profits. The company reportedly earned Rs 32,681 crore using a tactic called "marking the close." This strategy involves placing big buy or sell orders near the end of the trading day to push prices up or down artificially. Once the price moved, the company sold off shares quickly for a huge profit, which hurt other investors.

Pandey stressed that SEBI’s rules clearly forbid such actions. He said both SEBI and stock exchanges will continue to strengthen surveillance to catch and prevent such manipulative practices.

Jane Street is a proprietary trading firm, meaning it trades with its own money and not on behalf of clients. The illegal profits were also sent abroad, causing further concern.