The Securities and Exchange Board of India (Sebi) is set to tighten its surveillance measures for the derivatives market, said chairman Tuhin Kanta Pandey at an event on Monday. He also added that the market regulator was not considering any curbs on weekly expiry days.
He explained that the Sebi’s action against Jane Street was a surveillance matter, and that monitoring efforts will continue at both the exchange and regulatory levels.
“We are watching it as a surveillance issue and surveillance at both at exchange and Sebi level will continue and we will also upgrade those measures,” Pandey said while noting that it doesn’t see other risks like Jane Street.
He further added that a great deal of analytical work has been done based on a high volume of data but manipulative practices can be worked out by different players in different ways.
Addressing the possibility of Jane Street challenging the order, Pandey emphasised that Sebi possesses all necessary powers to investigate and act against fraudulent practices.
“Within regulations, Sebi has all the powers to investigate and everyone has freedom to challenge those actions, as we are living in a democratic world and people have avenues to do that, what Sebi had to do at the interim stage, they had already indicated,” he added.
He cited the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations, which explicitly prohibit manipulative and fraudulent activity in the market. While acknowledging the right of entities to challenge regulatory actions, he said Sebi had already laid out its interim measures and the order speaks for itself.
Jane Street had said in a on Friday that it disputes the findings of the SEBI Interim Order and will further engage with the regulator.
