Breaking News: Jane Street Deposits Rs 4,843.5 Crore As Per Sebi Order; Can It Trade In Indian Market Now?
In a significant development, Jane Street Group, a global proprietary trading company, has deposited Rs 4,843.5 crore in an escrow account, as per Sebi’s order, making it eligible to resume trading operations in Indian equity markets.
As per the latest updates, Jane Street Group has fulfilled the key directive from Sebi, which had directed the firm to deposit the alleged unlawful gains in an escrow account. The move comes after Sebi ordered the firm to deposit the amount on July 3, 2025, following an investigation into alleged market manipulation.
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.
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.
What Happens Now?
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.
Conclusion
In conclusion, Jane Street’s decision to deposit Rs 4,843.5 crore in an escrow account, as per Sebi’s order, marks a significant step towards resuming its trading operations in Indian equity markets. While the firm’s future actions remain uncertain, the move is seen as a positive development for the Indian stock market.
