Madhabi Puri Buch refutes regulatory failure claims in Jane Street matter

Madhabi Puri Buch, former Sebi chairperson, defends the regulator's actions in Jane Street case, stating that examination began in April 2024, and Sebi took several steps before issuing an order

Madhabi Puri Buch, the former chairperson of the Securities and Exchange Board of India (Sebi), has rubbished claims of regulatory failure in handling the Jane Street matter.

 

Buch, who demitted office in February, emphasised that Sebi began examining the matter as early as April 2024. The regulator took numerous steps, including identifying index manipulation, issuing circulars, and sending a caution letter to Jane Street, instructing it to cease and desist from certain trading patterns, she said. 

“During that period, Sebi constituted a multidisciplinary team of officials to conduct a comprehensive examination of the matter. This thorough investigation led to the detailed findings that form the basis of the order,” Buch said in a statement on Tuesday. 

 

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The current chairperson, Tuhin Kanta Pandey, recently described the Jane Street case as a surveillance issue. He added that the regulator would be strengthening the surveillance and monitoring of such players and derivative trades. 

 

“The order passed by Sebi speaks for itself. From April 2024, Sebi was actively engaged in examining and investigating the extremely complex structures and strategies deployed by Jane Street. We also worked to verify and analyse the relevant data,” Buch stated.

 

In an order dated 3 July, the market watchdog barred Jane Street from the Indian markets and directed the impounding of ₹4,834 crore in “unlawful gains” derived from manipulative strategies. The US-based trading firm may challenge the Sebi order.

 

“In parallel, Sebi made various policy-level interventions in October 2024 and instructed the National Stock Exchange (NSE) to issue a cease and desist letter to Jane Street in February 2025,” the former chairperson added.