05-07-2025
Jane Street case: Market manipulation will not be tolerated, says Sebi Chairman Tuhin K Pandey
In light of the alleged manipulative trading practices by Jane Street, a US-based global proprietary trading firm, in the domestic capital market, Sebi Chairman Tuhin Kanta Pandey on Saturday warned that any form of market manipulation will not be tolerated.
On Thursday, the Securities and Exchange Board of India (Sebi) ordered the impounding of Rs 4,843.57 crore in alleged unlawful gains made by Jane Street through manipulative trading. The markets regulator also prohibited the firm from engaging in any securities transactions until the recovery of the alleged illegal gains is completed and stated that 'JS Group is not a good faith actor that can be, or deserves to be, trusted'.
'Market manipulation will not be tolerated,' Pandey told reporters when asked if Sebi was looking into the model of foreign portfolio investors (FPIs) that are setting up office locally after the Jane Street case. He was talking on the sidelines of the 77th Foundation Day celebration of the Bombay Chartered Accountants' Society (BCAS).
To a question on if there was a need to increase monitoring of exchanges, custodian and brokers, Pandey said the surveillance was there.
'We have effectively increased surveillance, both at the exchange level as well at the Sebi level. This (Jane Street) is basically a surveillance issue and we are keeping track of (it) more closely.
While delivering the speech on the topic, 'Corporate governance, in letter and spirit – role and responsibility of professionals', Pandey said in today's business landscape, corporate governance was not a matter of choice — it is an imperative.
'It forms the bridge between a company's performance and the trust it earns from its stakeholders. Sound governance practices are central to sustaining investor confidence, ensuring board independence, and enabling effective oversight in listed companies,' the Sebi chairman said.
He said the markets regulator has taken a slew of measures to strengthen corporate governance in listed companies.
'A significant milestone was the introduction of Clause 49 of the Equity Listing Agreement in the year 2000, which brought formal governance standards into the Indian capital market landscape,' he said.
Sebi has adopted a hybrid approach towards the corporate governance framework, combining both rule-based and principle-based elements.
Speaking on transparency, he said a well-functioning capital market thrives on transparency, trust, and equal access to information.
Pandey said chartered accountants serve as the financial custodians of corporate India. They are stewards of trust — trust that investors, regulators, lenders, and the public place in the financial statements of companies.
'Transparency in disclosing related-party transactions, managing conflicts of interest, and presenting material developments in a timely manner are all non-negotiable responsibilities you (chartered accountants) are entrusted with — and rightly so,' Pandey said.
He said that chartered accountants often serve as a bridge between company management, auditors and regulators – ensuring that the principles of fairness, independence, and accountability are upheld in both spirit and practice.
