Market manipulation ‘will not be tolerated,’ warns SEBI Chairman Tuhin Kanta Pandey

Sebi chairman Tuhin Kanta Pandey on Saturday declared that market manipulation is “not going to be tolerated.” His message comes a day after the regulator slapped an interim order against New York-based hedge fund manager Jane Street.

Sebi on Friday barred US-based Jane Street Group from the Indian securities markets and ordered them to disgorge unlawful gains of ₹4,843 crore for unlawful gains — potentially the highest disgorgement ever.

Jane Street allegedly manipulated the stock indices through positions taken in the derivatives segment.

Which companies are barred ?

In its interim order, Sebi has debarred the Jane Street Group, consisting of the following companies: JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia.

The investigation into the activities of the group is ongoing, the news agency reported.

What is Sebi’s next move?

Speaking at an event organised by the Bombay Chartered Accountants Society, Chairman Tuhin Kanta Pandey confirmed that surveillance has been increased both by the regulator and also at the exchange level to deter future misconduct.

The Sebi chief made it clear that CAs must adhere to some “non-negotiable responsibilities, which includes transparency in disclosing related party transactions, managing conflicts of interest and presenting material developments in a timely manner.”

"You have a critical responsibility to ensure that corporate governance is not reduced to a checklist," he advised the CAs.

Balancing oversight and ease of doing business

While tough on manipulation, the Sebi chairman also spoke in favour of not having too much of compliance.

"We are also mindful that too much information, too much compliance adds to a big compliance burden which may not actually serve the interest that we really intend to serve," he said.

“We would also like to see wherever we have the possibility of doing better results with less compliance, less information, less onerous responsibility and less micromanagement on the part of the regulator,” he said, welcoming suggestions for smarter regulation.

(With agency inputs)