‘False Narrative’: Ex-SEBI Chief Madhabi Puri Buch Says Jane Street Probe Began Under Her Watch

On the Jane Street probe, Ex-SEBI Chief Madhabi Puri Buch dismissed claims of regulatory failure, stating SEBI had been actively investigating the matter.

According to a press statement on July 8, 2025, Buch emphasized that the SEBI order reflects consistent and ongoing regulatory action.

Sebi had begun investigating the matter for over a year before its July 3 interim order.

"The interim order... has clearly documented the sequence of events," Buch said, referring to the 105-page order that accuses the global quant firm of expiry-day manipulation in index derivatives. Sebi’s probe started in April 2024 and involved a multi-disciplinary team tasked with examining Jane Street’s trading structures and patterns, she mentioned.

The Indian securities regulator had on Friday barred Jane Street from buying and selling securities in India and ordered the seizure of USD 567 millions in assets.

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Meanwhile, the U.S.-based global trading major Jane Street has decided to formally challenge the Securities and Exchange Board of India’s (SEBI) finding that the firm manipulated Indian benchmark indices for profit.

According to an internal email sent to employees and reviewed by Reuters, Jane Street expressed strong dissatisfaction with SEBI’s recent action, calling the allegations “extremely inflammatory.”

According to the Sebi investigation, Buch said the regulatory body between April 2024 and February 2025 had identified potential index manipulation, issued policy circulars, and even directed the National Stock Exchange (NSE) to send a cease-and-desist letter to Jane Street in February 2025 — months before the public order.

“It is extremely unfortunate that certain sections of the media are choosing to ignore these facts in plain sight and seeking to create a false narrative by implying that there was regulatory failure by Sebi,” she said. “The order passed by Sebi speaks for itself.”

The July 3 order barred Jane Street and its Indian arm, JSI Investment Pvt Ltd, from accessing the Indian securities market and directed them to disgorge Rs 4,840 crore (USD 560 million) in alleged unlawful gains. It also laid out how the firm allegedly used its India-based unit to execute intraday trades in the cash segment — a route unavailable to FPIs — to influence options pricing on expiry days.