Market manipulation: Jane Street moves SAT against Sebi charges

Jane Street Group filed an appeal in a court, alleging that Sebi denied it access to crucial documents needed to defend against market manipulation accusations.The New York-based trading firm has requested the Securities Appellate Tribunal in Mumbai to order Sebi to grant "full and free" inspection of the materials, a copy of the appeal it filed showed.

It also sought a stay on further regulatory action in the case until its appeal is resolved, the document showed.The company's appeal and arguments mark a major turn in one of global finance's most closely watched disputes, pitting a major markets regulator against one of the most successful prop trading houses on Wall Street. The outcome of the US firm's challenge to Sebi's July 3 order could shape how other global quantitative firms, including Jump Trading, Citadel Securities and IMC Trading operate in India.

Jane Street declined to comment.

Sebi didn't respond to an email seeking comment.In its appeal, the US trading giant argued that Sebi's surveillance department had already reviewed the same trading activity and found no evidence of manipulation.The regulator, in a July order, accused Jane Street of using its "immense trading, financial and technological prowess" to manipulate markets, particularly index options.Jane Street deposited Rs 4,840 crore in an escrow account to comply with the ruling, after which the regulator lifted a temporary trading ban. Bloomberg