Sebi Chairman Tuhin Kanta Pandey: Zero Tolerance for Market Manipulation

Sebi's Stance on Market Integrity

Mumbai: Tuhin Kanta Pandey, the chairman of the capital markets regulator Sebi, emphasized on Saturday that any form of market manipulation will not be tolerated.

His comments came shortly after an interim order was issued against the New York-based hedge fund, Jane Street. Pandey noted that both the regulator and the exchanges have ramped up their surveillance efforts.

When questioned about similar activities involving other foreign portfolio investors, he reiterated, "Market manipulation is not going to be tolerated."

On Friday, Sebi prohibited Jane Street Group from participating in the securities markets and ordered the firm to return unlawful gains amounting to ₹4,843 crore, citing allegations of manipulating stock indices through derivatives.

This figure could represent the largest disgorgement amount ever mandated by Sebi.

The interim order has barred JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading—collectively known as the Jane Street Group—from trading until further notice as investigations continue.

During an event hosted by the Bombay Chartered Accountants Society, Pandey stressed the importance of transparency in related party transactions, managing conflicts of interest, and timely disclosures as "non-negotiable responsibilities" for chartered accountants.

"It is crucial that corporate governance is not merely treated as a checklist," he advised.

He also advocated for a balanced approach to compliance, stating, "Excessive compliance can create a significant burden that may not align with our intended goals."

Pandey expressed a desire for improved outcomes with reduced compliance demands, welcoming suggestions for less micromanagement from regulators.