India’s SEBI launched a formal investigation into Jane Street’s trading practices due to ongoing complaints. The regulator believed inadequate data was used in the initial probe and temporarily barred the firm from local markets, imposing a $567 million penalty. Jane Street has filed an appeal, seeking documents and data from SEBI.

SEBI’s top leadership was unsatisfied with the initial examination by its surveillance department and initiated a formal investigation in December 2024. This process gives the regulator the power to seek data from Jane Street’s custodian bank and domestic trading partner. The firm’s appeal questions SEBI’s change of stance and seeks copies of complaints.

SEBI received complaints of manipulation of India’s key indexes and continued to investigate Jane Street’s trading activity over a longer time frame. The regulator warned the firm in February to refrain from taking large positions on days when derivatives contracts expire due to potential price volatility. SEBI’s investigation led to a $42.28 million order against Jane Street based on its trading performance on May 15.

Read more at Yahoo Finance: India regulator ramped up Jane Street probe due to inadequate data, continued complaints, sources say