Sebi and Pandey downplay risks compared to Jane Street

Sebi’s Chairman, Tuhin Kanta Pandey, spoke to the press recently, emphasizing that the market watchdog does not perceive many risks similar to the manipulations carried out by Jane Street, a hedge fund. Reflecting on a recent Sebi order that highlighted gains exceeding Rs 4,800 crore by Jane Street, Pandey mentioned that the regulator is contemplating enhancing its surveillance systems.

Pandey addressed inquiries about potential market manipulations by other funds or investors, expressing confidence that the Jane Street incident primarily involved surveillance issues. He underscored the significance of bolstering scrutiny in this area and emphasized that robust surveillance and enforcement mechanisms are pivotal to addressing wrongdoing effectively.

In the wake of an order issued on Friday, Sebi found Jane Street guilty of manipulating indices by strategically wagering in cash, futures, and options markets simultaneously to generate substantial profits. Consequently, the hedge fund has been barred from market access, and gains amounting to over Rs 4,843 crore have been confiscated. Investigations revealed that Jane Street amassed a net profit of Rs 36,671 crore between January 2023 and May 2025.

Offering insights on safeguarding retail investors in derivative markets, Pandey clarified that there are no current plans to introduce monthly expiries in the segment. He iterated that any future initiatives aimed at protecting retail investors in derivatives would hinge on factual data and analysis.

Addressing concerns about recent interventions’ efficacy in curbing retail losses, Sebi is set to release comprehensive data on retail investors’ performance in derivative markets over the past three months later today. A prior Sebi study highlighted that over 90 percent of retail investors incurred losses due to unsuccessful bets, prompting the implementation of specific measures.