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1. SEBI Greenlights Jane Street’s Comeback
After a high-profile trading ban, US-based quant giant Jane Street has been conditionally allowed to resume operations in India.
- The firm deposited Rs 4,843 crore in an escrow account, fulfilling SEBI’s July 14 deadline
- Trading ban lifted via SEBI’s official communication, but restrictions remain in place
- NSE and BSE instructed to monitor Jane Street’s trades closely
2. Trading Strategy Under Scrutiny
Jane Street’s return isn’t a full reinstatement.
- The firm is barred from index options trading, the segment where alleged manipulation occurred
- Cash segment trading also paused until Jane Street explains its strategies to SEBI
- The firm has voluntarily agreed to limit its activities and avoid flagged patterns
3. Market Impact and Regulatory Signals
Jane Street’s absence had a chilling effect on India’s derivatives market.
- F&O volumes dropped nearly 20 percent during the ban
- The firm reportedly earned Rs 43,289 crore in index options profits between Jan 2023 and Mar 2025
- SEBI’s move signals openness to global capital, but with stricter compliance expectations
4. What’s Next for Quant Flows?
Industry insiders expect a cautious re-entry.
- Jane Street may scale back high-risk strategies
- Rival HFT firms could gain ground amid tighter surveillance
- SEBI’s broader probe now includes other global players like Citadel and Tower Research
Sources: Moneycontrol, Financial Express, Outlook Business, Times Now, Economic Times, MSN India
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