Sebi Chairman says, no other market risk like Jane Street case

Sebi Chairman Tuhin Kanta Pandey said the regulator does not see widespread risks similar to the Jane Street manipulation case. SEBI is planning to enhance surveillance after impounding over Rs 4,843 crore from the hedge fund for index manipulation

Mumbai: Sebi Chairman Tuhin Kanta Pandey on Monday said the capital markets regulator does not see “many other risks” like the manipulations done by the hedge fund Jane Street.

Speaking to reporters days after a Sebi order pointed towards gains of over Rs 4,800 crore made by Jane Street, Pandey said Sebi is mulling upgrading its surveillance systems. “And I don’t think there are very many other risks,” Pandey said, replying to a specific question on whether there are other funds or investors who may have manipulated the markets in a similar way.

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What happened in the Jane Street matter was “basically” a surveillance issue, and the regulator is upping its focus on the aspect just because of that, the career bureaucrat-turned-regulator said.

Stressing that the action being taken against Jane Street is within the confines of the regulatory powers that exist, Pandey suggested that it is not regulatory powers but better surveillance and enforcement that can help act against any wrongdoers.

In an order released in the early hours of Friday, the market regulator found Jane Street, a New York-based hedge fund, guilty of manipulating the indices by taking bets in the cash, and, futures and options markets simultaneously for making handsome gains.

It has suspended the hedge fund from accessing the market and impounded over Rs 4,843 crore in gains. The probe has found that Jane Street made a profit of Rs 36,671 crore on a net basis during the probe period from January 2023-May 2025.

With suggestions coming in on how having monthly expiries in the derivatives segment can help protect retail investors, Pandey said there is no such move under consideration. He said whatever further steps the regulator takes to protect retail investors in the derivatives market will only be based on data.

Amid heightened speculation on whether recent interventions have its intended impact in reducing the retail losses, Pandey said Sebi is likely to come out with detailed data on the performance of retail investors in the derivative markets over the last three months later on Monday.

It can be noted that a Sebi study had found over 90 per cent of retail investors‘ bets going awry and resulting in losses, which led to specific measures.