Jane Street, the US-based high-frequency trading giant, is back in the Indian market ring—this time after a hefty ₹4,840 crore deposit. The Securities and Exchange Board of India (Sebi) has lifted trading restrictions on the firm following the escrow payment, according to a Reuters report published on July 21.
This development comes just weeks after Sebi cracked down on Jane Street over alleged manipulation of the Nifty and Bank Nifty indices. Now, with a ₹4,843.57 crore deposit marked under lien in Sebi’s favour, the market watchdog seems to have softened its stance—at least for now.
Sebi reportedly sent an email to Jane Street on July 19 stating that the restrictions placed under the earlier interim order no longer apply after the escrow deposit. But that doesn’t mean the matter is shut.
In fact, Sebi’s own statement added a layer of caution. Jane Street had asked for certain conditional restrictions to be removed following the deposit, but the regulator said this request is still “under examination.” So while trading may have resumed, the cloud over the firm hasn’t completely cleared.
Back on July 3, Sebi had pulled the plug on Jane Street’s trading activities in India, accusing it of playing smart with the indices. The firm allegedly picked up big chunks of Bank Nifty stocks—both in the cash and futures markets—to keep the index afloat during early trade. At the same time, it allegedly created large short positions in index options, which were either exercised or allowed to lapse later in the day. This move, Sebi believes, was aimed at tilting the market in its favour.
To get back in the game, Jane Street was asked to cough up a sizeable ₹4,843.57 crore and deposit it into an escrow account. The firm complied last week, wiring in $567 million (roughly the same in rupee terms), which now lies in a Sebi-controlled account.
There’s also buzz that Sebi might be looking beyond this one episode. According to media reports, the regulator could be expanding its investigation into Jane Street’s trades across other Indian exchanges as well. If that happens, more layers of the story could unfold in the coming days.
For now, Jane Street is back in action. But with Sebi still watching closely, it’s hardly business as usual.