Back in the Ring: Jane Street Reclaims Access to Indian Markets After Rs 4,843.5 Crore Deposit

Image Source: The Financial Express

World markets behemoth Jane Street Group officially returned to the Indian securities market after complying with a important directive issued by the Securities and Exchange Board of India (Sebi). The firm deposited Rs 4,843.5 crore in an escrow account, completing the requirement outlined in Sebi's July 3, 2025, interim order.

Key Developments and Compliance Milestone

Jane Street's deposit is the turning point of a trading ban issued owing to alleged manipulation in index options, specifically in Bank Nifty futures.

The escrow account is lien-charged in favor of Sebi to keep regulatory control over the gains impounded.

With this compliance, Jane Street can now resume trading, though under close surveillance.

Background of the Ban

Sebi had banned Jane Street and three associated entities—JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd—from Indian markets.

The regulator charged Jane Street with profiting by Rs 43,289 crore using manipulative strategies on 21 expiry dates.

These included active futures and options trading of Bank Nifty with a view to influencing index closing prices.

Future Outlook and Regulation of Oversight

Even though Jane Street has objected to Sebi's report, it has agreed to meet the regulator once more.

Sebi has directed exchanges to watch the trading pattern of the firm to avoid recurrence of unfair trade practice.

A final decision will follow after post-hearing examinations and further investigation into the alleged manipulation.

Sources: Economic Times CFO, Moneycontrol, Livemint, Goodreturns, SiliconIndia