Sebi ramps up Jane Street probe amid deficient data

Complaints Continuing

- JAYSHREE P UPADHYAY

The Securities and Exchange Board of India (Sebi) launched a formal investigation into Jane Street's trading practices, even though its surveillance department had recommended otherwise, due to continued complaints from market participants, two sources said.

Sebi also believed inadequate data was used in the initial probe into the US high-frequency trading firm, they said, amid fears it might have manipulated the stock and bond markets.

Sebi on July 4 temporarily barred the firm on allegations of market manipulations, which the company has denied. It also imposed a $567-million penalty on Jane Street, which the company has deposited. While Jane can restart trading in India, it has refrained from doing so, Reuters reported last month.

On Wednesday, Jane Street filed an appeal before the Securities Appellate Tribunal against Sebi seeking documents and data which led to the formal inquiry.