Jane Street Group reportedly met the regulatory requirements for resuming trading in Indian securities markets by depositing Rs 4,843.5 crore in a separate escrow account, as directed by the Securities and Exchange Board of India (Sebi).
According to reports, Jane Street deposited the funds in accordance with the Sebi directive. The firm was previously barred from participating in Indian markets following Sebi's interim order on July 3.
Key Highlights
- Jane Street deposited approximately ₹4,843.5 cr ($564M) in SEBI‑mandated escrow, aiming to resume Indian trading.
- The firm has requested SEBI to lift its trading ban while contesting alleged market manipulation claims.
Sebi had directed Jane Street Group entities to place the suspected gains in an escrow account with a scheduled commercial bank in India, with a lien in favour of the regulator.
The regulator also issued strict instructions prohibiting the firm from purchasing, selling, or dealing in securities, either directly or indirectly, until compliance was ensured. The order also directed banks, custodians, depositories, registrars, and transfer agents to prevent any movement of Jane Street's assets until the required deposit was made.
With the escrow deposit completed, the previously imposed trading restrictions are lifted. However, it was reported that Sebi's order included a specific directive instructing Jane Street to refrain from engaging in any activities that would be considered manipulative, fraudulent, or unfair under current regulations. The firm has also been directed not to use the trading strategy identified by Sebi in its interim order.
While Jane Street has met the regulatory requirement, it is unclear whether the company will resume trading immediately or take a more measured approach, possibly evaluating regulatory cues and market conditions before reactivating its India operations.
Also Read: SEBI Bans Jane Street, Seizes $566.3 Mn for Nifty Manipulation
According to the report, Sebi has also directed Indian exchanges to closely monitor Jane Street's future dealings in order to ensure compliance and prevent potential market manipulation.
The regulator also stated that if Jane Street or its subsidiaries submit legally justifiable reasons to challenge the findings of the interim order, the restrictions could be reconsidered.
Furthermore, if the ongoing investigation finds no evidence of manipulation, the impounded funds may be released, and the firm will be free to operate in India. For the time being, the completion of the deposit allows Jane Street to resume trading activities within the parameters of Sebi's regulatory framework.
