Jane Street Seeks Extension as SEBI Probes Trading Allegations

by Priya Bhatiya

Posted on July 30, 2025

Jane Street Group, a major U.S. trading firm, is seeking an extension from the Securities and Exchange Board of India (SEBI) to respond to allegations of market manipulation detailed in a July 3, 2025 interim order. SEBI initially set a 21-day deadline for Jane Street’s response, which expired last week. Jane Street has formally requested more time to prepare its defense due to the complexity of SEBI’s 105-page findings and the need for access to key evidence.

Although the specific duration requested by Jane Street is not officially disclosed in public statements, several reports confirm the firm is engaging constructively with SEBI and has sought a significant extension. Unnamed sources cited in earlier reporting indicated Jane Street may have asked for up to six weeks, but official statements only confirm “an extension”.

Key points:

• Jane Street has already deposited ₹4,844 crore (approx. $560 million) into an escrow account as required by SEBI, which led to the lifting of its trading ban, but the firm is under strict surveillance and has chosen to abstain from both options and cash trading while the matter is unresolved.
• SEBI is expected to grant some extension but may approve fewer weeks than the maximum requested, with market commentary suggesting up to four additional weeks is possible, though this is not yet officially confirmed.
• The firm’s main defense is that its trading strategies are misunderstood and were in response to demand from retail participants, not market manipulation.

SEBI has not yet publicly responded to Jane Street’s extension request as of the latest reports dated July 29, 2025. Both parties are now engaged in a process that could define regulatory standards for global firms operating in India’s derivatives markets.

Important caveat: No official statement details the exact number of weeks SEBI will allow; all figures beyond SEBI’s original deadline are based on market sources and not formal regulatory announcements.

Ref: Jane Street Seeks Six Weeks for India Response, May Get Fewer