TUHIN KANTA PANDEY'S SEBI REVOLUTION: TAMING JANE STREET, REBUILDING TRUST

The Securities and Exchange Board of India's new chairman TUHIN KANTA PANDEY pledges robust reforms in his first major interview post the Jane Street scandal - his blueprint for trust and transparency

- By Annurag Batra and Palak Shah

SINCE THE REGULATORY CRACKDOWN on the US short seller Jane Street Capital, exposing a scandal that rattled investors and sparked intense scrutiny of the markets' integrity, the Securities and Exchange Board of India's (SEBI) new chairman Tuhin Kanta Pandey, delivered his first major interview to BW Businessworld Chairman and Editor-in-Chief Annurag Batra and Managing Editor Palak Shah. Pandey outlines his bold vision to restore trust, enhance transparency and fortify India's capital markets against manipulative practices like those alleged against Jane Street. His resolute stance and detailed insights signal a new era of decisive, technology-driven regulation under his leadership.

A Regulatory Wake-Up Call

The Jane Street case, which saw SEBI secure an unprecedented $597 million in just ten days, has become a defining moment for India's financial markets. The US-based high-frequency trading (HFT) giant was accused of manipulating key Indian indices, including the Nifty and Bank Nifty, through sophisticated strategies like intra-day index manipulation and extended marking-the-close. The SEBI's interim order on 3 July, 2025, barred Jane Street from trading and impounded Rs 4,843 crore in alleged unlawful gains, signalling one of the regulator's most stringent actions till date.

Pandey defends SEBI's decision to allow Jane Street to resume trading under strict conditions, emphasising the importance of due process. “The Jane Street case is an interim order, not a final judgment. Our legal framework, rooted in natural justice, requires us to hear the other side before permanent penalties,” he says. Pandey clarifies that Jane Street’s return to trading was contingent on a ban on manipulative activities, with heightened surveillance ensuring compliance. “This isn’t leniency – it’s about balancing firmness with fairness while protecting the market,” Pandey asserts, addressing concerns about setting a risky precedent.