Jane Street’s Road to Recovery: Depositing 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 the Securities and Exchange Board of India’s (Sebi) interim order. This move has paved the way for the firm to resume its trading operations in Indian equity markets.
In its interim order, Sebi had directed Jane Street Group entities to deposit the alleged unlawful gains in an escrow account, citing the need to prevent market manipulation and protect investor interests. According to sources, the firm has complied with this directive, depositing the required amount on Friday.
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. This development comes as a relief to the company, which had been facing restrictions on its trading activities in India since July 3, 2025.
Sebi’s interim order prohibited Jane Street from accessing the securities market, effectively barring it from buying, selling, or dealing in securities, either directly or indirectly. The regulator had 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. The order also 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 this move may come as a setback for the company, it is essential to note that Sebi’s actions were taken to protect the integrity of Indian capital markets and prevent market manipulation.
What does this mean for Jane Street’s trading operations in India? While the company has fulfilled the deposit condition, it remains uncertain whether it will resume trading immediately or adopt a wait-and-watch approach, potentially gauging regulatory clarity and market sentiment before reactivating its India playbook.
In the near future, Indian exchanges will closely monitor Jane Street’s activities to prevent any recurrence of market manipulation. SEbi has also 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, stating that the Indian capital markets regulator had ‘misunderstood’ a standard hedging strategy, rejecting claims of manipulation. The company has maintained that its trading activities were legitimate and did not violate any regulatory norms.
In conclusion, Jane Street’s deposit of Rs 4,843.5 crore in an escrow account marks a significant step towards the company’s recovery in the Indian market. While the regulatory agency’s actions were taken to protect investor interests, it is essential to ensure that the firm’s trading activities are transparent and comply with regulatory norms.
