Sebi’s expanded probe may tighten noose

As the Securities and Exchange Board of India’s (Sebi) probe into US-based trading firm Jane Street widens to cover more strategies and indices, early findings suggest a larger scale of alleged market manipulation, according to people familiar with the matter.

- KHUSHBOO TIWARI

Since Sebi’s interim order in July, investigators have expanded their review to cover a broader set of securities and timeframes. The analysis has revealed additional suspicious trading patterns, indicating manipulation on a much wider scale, said sources with direct knowledge of the development.

‘An earlier report by the National Stock Exchange (NSE), which Jane Street has described as a “clean chit” in its appeal before the Securities Appellate Tribunal (SAT), had examined only trades in a handful of stocks during the opening hour of trading, sources said.

“The regulator has carried out a far more extensive investigation, and the findings go well beyond what was captured in the interim order. Large volumes of data are under review, and other indices are being brought under similar scrutiny,” a person aware of the matter said.