Jane Street Group Allowed to Resume Trading in India Under Strict Conditions
The Securities and Exchange Board of India (Sebi) has allowed US-based Jane Street Group to resume trading in Indian markets. This decision comes after the firm complied with a key condition of Sebi’s interim order by depositing ₹4,844 crore in an escrow account with a scheduled commercial bank in India. Sebi also holds a lien on the account, ensuring the funds cannot be moved without its approval.
Background
On July 3, 2025, Sebi had barred Jane Street from trading, accusing it of manipulative practices in the derivatives segment that allegedly disrupted price discovery and market fairness. Indian financial institutions were directed to block asset movements related to the firm. Sebi claimed that Jane Street had made unlawful gains and demanded an equal deposit into escrow pending investigation.
Jane Street denied wrongdoing, stating Sebi had misunderstood its hedging strategies and the broader roles of market makers and arbitrageurs.
Current Status
Now that the escrow deposit has been made in full, the trading ban and related restrictions are no longer in force. However, Sebi’s investigation is ongoing, and the relief is strictly conditional.
Ongoing Oversight
Stock exchanges have been instructed to closely monitor Jane Street’s trading positions and transactions to ensure no manipulative practices occur. Sebi emphasized that any future regulatory action will depend on the firm's conduct during this period.
While Jane Street is back in the market, Sebi has made it clear that its scrutiny remains, and further penalties could follow based on the probe’s final outcome.
