Jane Street deposits ₹4,840 cr to meet Sebi order, resume trading in India

Though trading restrictions are expected to be lifted, Jane Street remains prohibited from using the specific trading strategies flagged by Sebi

US trading firm Jane Street Group LLC has deposited ₹4,843.5 crore (approximately $564 million) into an escrow account to comply with a directive from the Securities and Exchange Board of India (Sebi). This move, reported by Moneycontrol, enables the firm to resume trading activities in India. 

 

The deposit was made on Friday, July 11, in accordance with Sebi's order issued on July 3, according to the report.

 

Sebi ban and stock drop

Market regulator Sebi had alleged that Jane Street made unlawful gains through trading strategies deemed manipulative and barred the firm from market activity until the specified amount was deposited. With compliance now confirmed, those restrictions should be lifted, though the firm remains prohibited from using the specific trading strategies flagged by Sebi.

 

 

Following the allegations, on July 4,  the stock suffered one of its steepest single-day declines this year. As reported by Bloomberg, BSE’s shares came under pressure following the Jane Street ban, sliding 21 per cent from their June peak and closing on Friday at their lowest in nearly two months. 

 

Jane Street deposits ₹4,843.5 crore with Sebi 

 

With the ₹4,843.5 crore deposit, Jane Street has fulfilled its requirement to re-enter the Indian market.  As per Clause 62.11 of Sebi’s order, the trading ban has been lifted — but only under the condition that the firm refrains from repeating the trading strategies flagged as manipulative.

 

It remains unclear whether Jane Street will resume trading immediately or adopt a more cautious, phased approach. Sebi has also directed exchanges to monitor the firm’s future trades closely to prevent any potential market manipulation.

 

Jane Street denies charges, probe underway

The case remains open pending further investigation. Jane Street has denied any wrongdoing, calling Sebi's interpretation a “misunderstanding” of standard hedging practices. 

 

A final verdict could lead to the release of the deposited funds if the allegations are ultimately disproven.