Jane Street takes on India market regulator in court

A three-member appeals court bench was to begin hearings yesterday between Jane Street Group LLC and India’s market regulator, in a closely watched case with broad implications for the world’s biggest equity derivatives market.

- CHIRANJIVI CHAKRABORTY BEI HU RANJANI RAGHAVAN

Justice P.S. Dinesh Kumar, presiding at the Securities Appellate Tribunal, will consider whether to admit Jane Street's appeal against a July interim order by the Securities and Exchange Board of India (Sebi), which accused the US trading giant of manipulative practices.

The New York-based firm filed its appeal last week, claiming Sebi denied it access to crucial documents needed to defend against the allegations. It also sought a halt on further regulatory action until its appeal is resolved.

The case has become a flashpoint between one of Wall Street's most successful trading firms and the regulator of the world’s top destination for derivatives by contracts traded. Its outcome could have implications for other global quantitative players such as Jump Trading, Citadel Securities, and IMC Trading operating in India.