Source: ET
Context:
On 10 September 2025, the Securities Appellate Tribunal (SAT) directed Sebi to file a reply within three weeks explaining why it has not disclosed certain documents to US-based trading firm Jane Street in the ongoing derivatives market manipulation case.
Background:
- Jane Street had approached SAT alleging that SEBI failed to provide key documents related to its investigation into derivatives market manipulation, which they claimed were necessary to defend themselves effectively.
- The case pertains to alleged trading irregularities in the derivatives segment, potentially involving misuse of market positions, insider trading, or other manipulative practices.
SEBI Norms Potentially Invoked:
- SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 – Prevents market manipulation, deceptive practices, or artificial price movements.
- SEBI (Prohibition of Insider Trading) Regulations, 2015 – Addresses trading based on unpublished price-sensitive information.
- SEBI (Procedure for Holding Inquiry and Imposing Penalties) Regulations, 2014 – Governs how SEBI conducts investigations and shares documents with parties under inquiry.
- SEBI Act, 1992 (Sections 11, 11B, 11C) – Provides SEBI the authority to regulate securities markets and take action against manipulative practices.
Securities Appellate Tribunal (SAT)
The Securities Appellate Tribunal (SAT) is a quasi-judicial body in India that adjudicates disputes and appeals arising from decisions of the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA).
Establishment:
- Constituted under Section 15K of the Securities and Exchange Board of India Act, 1992.
- Located in Mumbai, but can hold hearings at other places if necessary.
