NSE's role limited to providing data in Jane Street-like cases: CEO Chauhan

The National Stock Exchange (NSE) has no role beyond providing data to the regulator in cases like that of Jane Street, said NSE Managing Director and Chief Executive Officer (MD & CEO) Ashishkumar Chauhan on Wednesday. 

Chauhan made the remarks on the sidelines of the Association of Portfolio Managers in India’s (APMI’s) annual conclave in Mumbai. 

“Exchanges have jurisdiction over the regulated entities by exchanges, that is, brokers and companies — and not over investors. Investors are not regulated by the exchanges. Jane Street is part of investors. Exchanges, especially NSE, have no role except providing data to the regulator as and when they ask,” said Chauhan, responding to questions about potential surveillance concerns. 

 

Earlier, while lifting its ban on US trading firm Jane Street, the market regulator had directed exchanges to monitor the group’s dealings and positions on an ongoing basis to ensure there is no manipulative activity.  

 

In response, the exchanges confirmed their commitment to full compliance. 

 

Addressing questions on proposed reforms in the equity derivatives market, Chauhan emphasised that exchanges operate within the regulatory landscape.

 

“Depending on what Sebi wants, exchanges will have to comply. We also have a front-line regulator’s job,” said Chauhan.

 

On the NSE’s much-anticipated initial public offering (IPO), Chauhan said the exchange will file its draft red herring prospectus (DRHP) a few months after receiving the market regulator’s no-objection certificate (NOC). 

 

He estimates that the entire process — from securing the NOC to receiving IPO approval — could take around 8 to 9 months.

 

Additionally, NSE has submitted two settlement applications with Sebi related to the colocation and dark fibre matters, and is currently awaiting the regulator’s response.