US Trading Firm Jane Street Files Case Against SEBI; Where Are the So-Called ‘Massive Oil Reserves’ of Pakistan Cited by Trump?; Indian Banks Complain to RBI They Are ‘Choking’ on State Bonds

A newsletter from The Wire | Founded by Tanweer Alam, Sidharth Bhatia, Pratik Kanjilal, Seema Chishti, Sushant Singh, MK Venu, and Siddharth Varadarajan | Contributing writer: Kalrav Joshi, with additional inputs by Anirudh SK

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Over to Sidharth Bhatia for today’s Cable

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Snapshot of the day

September 3, 2025

Sidharth Bhatia

The US trading firm Jane Street on Wednesday filed a case against India’s markets regulator, the Securities and Exchange Board of India (Sebi), arguing that it has not been granted access to crucial documents in its defence against allegations of market manipulation. According to filings reviewed by Reuters, in the case filed before the Securities Appellate Tribunal (SAT), the firm has asked the tribunal to direct Sebi to share material that the market watchdog says is essential to rebut the charges. “These documents are undeniably relevant,” Jane Street stated in its appeal. Sebi, in an interim order on July 3, had accused Jane Street of manipulating the Nifty Bank index, and barred it from trading in India. According to Sebi, the firm executed a two-stage strategy:

• First, buying constituent stocks in both cash and futures markets to artificially push up the index.

• Then unwinding positions while holding large short bets in index options, thereby profiting from the decline.

Jane Street, however, has rejected the claims, insisting its actions were standard “index arbitrage”. This is a trading practice aimed at exploiting price discrepancies across markets to enhance liquidity and efficiency. In an internal note to employees days after the order, the firm