Jane Street Deposits Rs 4,843.5 Crore As Per Sebi Order; Can It Trade In Indian Market Now?

News18

5 days ago

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In its interim order, Sebi had directed Jane Street Group entities to deposit the alleged unlawful gains in an escrow account
Global proprietary trading company Jane Street Group is free to resume trading in Indian equity markets as it has complied with a key directive from the Securities and Exchange Board of India (Sebi). Sources told Moneycontrol that the firm has deposited Rs 4,843.5 crore in an escrow account, fulfilling the core requirement laid out in Sebi's interim order dated July 3, 2025.
According to a Moneycontrol report, a source familiar with the matter confirmed that Jane Street Group deposited Rs 4,843.5 crore on Friday to comply with the SEBI order. Another person aware of the proceedings said that with the funds now placed in an escrow account and the terms of the order fulfilled, Jane Street is eligible to resume trading operations on Indian exchanges.
In its interim order, SEBI had directed entities within the Jane Street Group to deposit the alleged unlawful gains in an escrow account held with a scheduled commercial bank in India, with a lien marked in favour of the regulator (Clause 62.1). Clause 62.2 of the same order prohibited the group from accessing the securities market, effectively barring it from buying, selling, or dealing in securities, either directly or indirectly.
The order also instructed banks, custodians, depositories, registrars, and transfer agents to block any movement of Jane Street's assets until the deposit condition was met.
However, Clause 62.11 of the order made it clear that these restrictions — including the trading ban — would be lifted once Jane Street complied with the deposit requirement. That said, SEBI explicitly cautioned the group to refrain from 'directly or indirectly engaging in any fraudulent, manipulative, or unfair trade practices," including using trading patterns identified in the interim order.
In essence, Jane Street is now barred from deploying the specific trading strategy that SEBI flagged in its order.
While Jane Street has fulfilled the deposit condition, it remains uncertain whether the firm will resume trading immediately or adopt a wait-and-watch approach, potentially gauging regulatory clarity and market sentiment before reactivating its India playbook.
SEBI also noted in its order that Indian exchanges should monitor Jane Street's future activities closely to prevent any recurrence of market manipulation.
Additionally, SEBI acknowledged that if the entities provide credible justifications that challenge the interim findings, the restrictions could be lifted following a hearing. Should a detailed probe ultimately find no wrongdoing, the impounded funds would be returned, and the firm would be allowed to operate in Indian markets without restrictions.
Jane Street, for its part, has denied SEBI's allegations. In an internal memo to employees cited by media reports, the firm stated that the Indian capital markets regulator had 'misunderstood" a standard hedging strategy, rejecting claims of manipulation.
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