Key Highlights:
- Jane Street deposits Rs 4,843.5 crore in escrow, fulfilling SEBI’s condition.
- Trading ban likely lifted as per Clause 62.11 of SEBI’s order.
- Firm barred from using flagged trading strategies in the future.
Mumbai: US-based global trading powerhouse Jane Street has deposited Rs 4,843.5 crore into an escrow account, fulfilling a key requirement under the Securities and Exchange Board of India (SEBI)’s interim order issued on July 3, 2025. This major move comes amid heightened scrutiny over alleged illegal trading practices and follows regulatory pressure that significantly impacted market volumes, especially in the derivatives segment.
Can Jane Street Resume Trading?
According to a report by Moneycontrol, sources have confirmed that the escrow deposit satisfies the primary condition laid out in SEBI’s interim directive. As per Clause 62.11 of the order, the regulatory restrictions on trading would be lifted once Jane Street made the required payment. This implies that Jane Street can now resume trading operations, assuming no further violations of SEBI’s stated conditions occur.
The initial directive had barred the firm from participating in the Indian securities market, directly or indirectly, until the full amount of alleged illegal profits was secured in an escrow account. SEBI also instructed all market infrastructure entities — including banks, custodians, registrars, depositories, and transfer agents — to halt any transactions or movement of Jane Street’s assets until compliance was achieved.
Key Provisions of SEBI’s Interim Order
The July 3 order stemmed from concerns regarding certain trading strategies employed by Jane Street, which SEBI believed were in violation of market regulations.
Clause 62.1: Required Jane Street to deposit alleged illegal gains in an escrow account, with SEBI holding a lien over the amount.
Clause 62.2: Imposed a blanket ban on trading and any interaction with the securities market.
Clause 62.11: Provided that all restrictions would be lifted once the financial deposit condition was fulfilled.
Importantly, SEBI’s order also directed the group to cease and desist from using specific trading strategies it considered manipulative or unfair, ensuring that the firm's future conduct remains within the regulatory framework.
Market Implications and Outlook
The initial ban had led to noticeable disruptions in the derivatives market, with a dip in volumes and increased concerns about compliance among global trading firms. Now that Jane Street has fulfilled the directive, market sentiment could improve, although investors and regulatory watchers will likely monitor any further developments closely.
It remains critical for Jane Street to steer clear of any trading patterns identified in SEBI’s order, even after resuming operations, as any misstep could invite renewed penalties.
