Sebi member heading Jane Street probe leaves office after expiry of term

Ananth Narayan G, the Indian regulator who led the high-profile investigation into alleged market manipulation by US high-frequency trading firm Jane Street, stepped down on Thursday at the end of his three-year term.

Narayan, the second-ranking official at the Securities and Exchange Board of India, headed the market regulation and the department dealing with foreign investors.

After two decades at top foreign banks, Narayan joined SEBI in October 2022, where he led a series of measures to cool activity in India’s red-hot derivatives markets and pushed for more disclosures by investment vehicles and offshore funds.

Narayan will hand over the Jane Street investigation, which the market regulator has said is at a critical juncture and where the final order could have a much broader scope.

In one of the strongest regulatory actions against a foreign investor, SEBI on July 4 temporarily suspended Jane Street from trading in the local securities market, saying the company had manipulated indices. The American company has denied the accusation.

Jane Street, which earned $10.1 billion in net trading revenue in the second quarter, according to a public statement, has filed an appeal against the market regulator for failing to provide documents crucial to its defense in the case. An Indian court on September 9 ordered SEBI to file a response to the appeal, effectively halting the regulator’s final orders until the case is heard by the court on November 18. Narayan will also leave key reforms to his successor, including efforts to streamline processes for foreign investors and steps to cool retail participation in equity derivatives, where more than 90% of traders suffer losses.

The market regulator is considering extending the term of derivatives contracts and introducing product suitability rules to limit retail activity in riskier segments, Reuters reported in August.