Jane Street Group LLC has requested an additional six weeks to respond to market manipulation allegations made by India’s securities regulator, though it may only receive a four-week extension, according to a person familiar with the matter.
The US-based trading firm is under scrutiny from the Securities and Exchange Board of India (SEBI) for its alleged role in controversial options trades in the Indian markets.
The original 21-day deadline, granted by SEBI for Jane Street to respond to its preliminary findings, expired last week.
While SEBI is weighing a four-week extension, the situation remains fluid. Board member Ananth Narayan, who signed the initial order dated July 3, may still decide to grant the full six weeks requested. Jane Street declined to comment, and SEBI has not issued a response to queries on the matter.
In a statement issued on Monday, Jane Street said it is engaging “constructively” with SEBI and has asked for more time to reply to the interim order. The company has also contested SEBI’s claims internally, stating earlier this month that the regulator had made “many erroneous or unsupported assertions” regarding its trading activities in India.
Last week, SEBI lifted Jane Street’s temporary trading ban after the firm deposited ₹48.4 billion (approximately $556 million) in alleged “unlawful gains” into an escrow account.
The case has attracted significant attention, given that India is now the world’s largest equity derivatives market by volume. The outcome could set a precedent for other international high-speed trading firms that have increasingly entered the Indian market.
Jane Street is expected to argue that its trading activities were driven by “outsized demand” from retail investors, not manipulation. The firm also plans to challenge SEBI’s accusations that it exploited low liquidity in cash and futures markets to influence prices.
Once Jane Street submits its formal response, Narayan will review the arguments and is expected to issue a new directive.