BENGALURU: U.S. trading firm Jane Street said on Monday it has sought an extension to respond to an interim order from India’s markets regulator alleging it manipulated securities markets.
In an interim order on July 3, the Securities and Exchange Board of India barred the company from trading securities in the Indian market, saying some of its trading strategies were manipulative and led to losses for retail investors, and gave it 21 days to respond.
However, SEBI lifted the trading restrictions on Jane Street last week after the firm deposited $567 million, giving the regulator rights over the money.
The company is continuing to not trade in the Indian market despite the regulator’s go-ahead.
“The firm’s strategies always include trading in options along with cash market. Since the firm had given an undertaking to SEBI that it will not trade in options, it is not trading cash as well,” a source with direct knowledge of the matter told Reuters.
Jane Street deposits $567 million so it can resume India trading, sources say
Jane Street sought extension because it needs more time to rebut the allegations about its trades, the source said on condition of anonymity as they are not authorised to speak to the media.
SEBI did not immediately respond to a Reuters email seeking comment on the extension Jane Street has sought.
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