Jane Street filed a challenge for Sebi’s manipulation fee: Report
On Friday, Sebi ordered Jane Street to return more than $ 550 million, which was banned in Indian transactions and explained that it was illegal profit. This ban is accompanied by the fact that the company has moved to India’s shares in a way that causes payments for derivatives connected by Jane Street.
The chairman said that SEBI is strengthening surveillance to investigate manipulation in derivatives.
SEBI argued that Jane Street artificially supported large amounts of components in the banking NIFTY index in the cash and futures market, and built a large short position in the index options at the same time.
Jane Street refuses to charge
Jane Street told his employees that he would fight the ban. In a memo sent to about 3,000 employees on Sunday, senior executives wrote that they were “disappointed” by Sevi’s “very inflammatory” accusation.
Memo, cited by the Financial Times, said, “It is deeply angry to see the company is misunderstood in this way.“ We are proud of our role in the global market, and it is painful to damage the company’s reputation by reports based on many wrong or unsupported arguments. ”
Jane Street vs Sebi
The problem with Jane Street’s SEBI is connected to two merchants who left the lawsuit and hedge funds that were filed last year. In this case, Jane Street insisted that merchants stole their precious strategies focused on India options. SEBI’s investigation has been expanded to the trading of Jane Street, connected to the banknote index, which tracks India’s major bank stocks. Regulatory agencies are now checking other parts of the Indian market. Jane Street argued that the transactions reported by Sebi are only “basic arbitrage”, which is a normal practice of the business.
Pushback
According to Sevi’s order, Jane Street ignored the warning of the local stock exchange. The company strongly challenges at this point. Jane Street said in the same note as the employees, “I used indicators on market impacts and trading attacks that seem to have been separated from real market epidemiology.
When the exchange first raised concerns, the company added that the company changed its approach to meet the “preference” later until we could better understand the concerns of the exchange.
“Once again, we have reached an understanding of concerns and left the feeling that it is reflected in the revision of the transaction behavior.” From February, we made continuous efforts to communicate with SEBI and continued to be rejected. “
Jane Street opposes SEBI’s order and asks for a hearing for 21 days. The company is trying to take a detailed response and plans to fight the ban.
In the meantime, Indian regulators say that they can expand investigations on other transactions and instruments related to the company. In one of Asia’s largest markets, Jane Street’s future is now hanging on how this fight is going.
