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The recently revealed Jane Street scandal may be bigger than what the market regulator Securities and Exchange Board of India (SEBI) has found so far. On July 3 SEBI banned the Wall Street proprietary trading giant from Dalal Street over suspected market manipulation. As per sources the scandal was at its peak during the tenure of Madhabi Puri Buch who resigned as the SEBI Chairperson in February this year after completing a three-year term. However Jane Street intends to challenge the SEBI ban. Notably Jane Street operates more than a dozen markets across the world and has been exploiting and misusing the largest derivative exchange for years. Madhabi Puri Buch’s Tenure Buch served as the Chairperson of the Indian from March 2022 to February 2025. During his tenure he made several promises such as strict action against speculation and protection for small investors. However the scandal highlights significant regulatory lapses during her tenure. Experts now putting their trust in the current SEBI Chairman Tuhin Kanta Pandey but some believe that his biggest challenge will be fixing the damage done by Buch. This week SEBI took quick and stringent action against Jane Street which is considered as a significant move within the first six months of Pandey’s term. This move can help rebuild the trust that SEBI lost under Buch. How SEBI Under Buch Leadership Overlooked Warning Signs? In the year 2022 Buch became the SEBI chairperson and promised several reforms including AI-based surveillance and stronger market integrity. But her term is considered shady and under scrutiny following the Jane Street scandal where it allegedly manipulated Dalal Street indices at least 21 times between the year January 2023 and May 2025. The US-based trading firm used the ‘pump and dump’ technique and made an illicit profit of Rs 4843 crore. This harmed the retail investors tremendously who were misled by the firm into risky derivatives trades. Despite early signs such as an American court revelation and several media reports last year – SEBI failed to take action. This year when the National Stock Exchange (NSE) highlighted the issue Buch’s regime remained inactive. The chairperson’s much-hyped tech systems failed to detect the manipulation. Jane Street Scandal: The Signs Were Always There It was evident that the Buch administration ignored the NSE’s concerns regarding the US-based trading firm in February this year. A US district court in Manhattan issued a strongly worded ruling against Jane Street in April 2024 following revelations that the firm allegedly profited USD1 billion yearly from Indian capital markets using exploitative tactics. Last month some media outlet also reported that how Jane Street and Millennium Management allegedly used market inefficiencies to scalp retail investors’ money. Over 90 percent retail investors lost their money in a derivatives market with record-high daily volumes. This is a harsh reality exposed by the US courtroom revelations. The Bush administrations disregard for the NSEs concerns showed indifference to a major national financial issue. This inaction and ignorance raise serious questions about how Buch-led SEBI failed to detect what is now seen as one of India’s biggest market scandals.