New York-based trading giant Jane Street Group has made a significant step towards restarting its business in India. The company has fully complied with a recent order from India’s market regulator, SEBI, by paying an astounding ₹4,843.57 crore (roughly $567 million) in an escrow account.
This move directly addresses a July 3, 2025, interim order from SEBI accusing the Wall Street company of manipulating the Indian derivatives market, particularly Nifty futures.
Jane Street has formally requested that SEBI lift the trading ban in light of the deposit. SEBI has acknowledged this request and said it’s currently under review.
Quick Recap:
Why Was Jane Street Banned in the First Place?
On July 3, SEBI:
- Charged Jane Street with manipulating market prices through aggressive trading strategies in futures and options.
- Directed the company to pay ₹4,843.57 crore, stating that it was due to wrongful trading profits.
- Complete ban was issued, disallowing Jane Street and its group from trading in Indian markets.
- Directed custodians, depositories, and banks to freeze the firm’s assets pending compliance.
Deposit Done – So, Is the Ban Over?
Yes – but with conditions.
What’s Changed:
- Jane Street has made the deposit as instructed.
- As per Clause 62.11 of SEBI’s order, this compliance technically lifts the trading restrictions.
- The company can now resume trading on Indian exchanges-but with important limitations.
What Still Applies:
- Jane Street is prohibited in its entirety from employing the manipulative trading strategies that resulted in SEBI taking its initial action.
- The company has to “cease and desist” from doing anything that looks manipulative or unfair in terms of Indian market regulations.
- SEBI has requested exchanges to closely monitor Jane Street’s activity in the future.
What Is Jane Street Saying?
Jane Street has strongly denied all allegations. In internal communications:
- The firm called SEBI’s findings “inflammatory”, saying they misunderstood a standard hedging/arbitrage practice.
- The company says it was carrying out a typical arbitrage trade on January 17, 2024, the major trading day that SEBI highlighted, rather than manipulating prices.
- Jane Street reported it had even voluntarily paused trading following feedback from NSE, and adjusted its approach accordingly.
Legal Showdown on the Horizon?
Even though the deposit has been made, Jane Street hasn’t backed down.
- SEBI has granted the firm 21 days to respond and seek a hearing.
- Sources indicate the firm will appeal the order in the This legal challenge Securities Appellate Tribunal (SAT).
- If it succeeds, Jane Street might be able to get back the escrowed money and possibly clear its name.
This legal challenge may establish a significant precedent for the regulation of foreign algorithmic trading firms in India.
What Does This Mean for Traders and the Market?
- After the initial ban, F&O (futures and options) volumes dropped by 20%, indicating Jane Street’s substantial influence in that market.
- Liquidity may improve as a result of their potential return, particularly in Nifty and Bank Nifty contracts.
- However, SEBI’s firm stance demonstrates its commitment to limiting high-frequency trading and shielding individual investors from market manipulation.
Conclusion:
Jane Street’s ₹4,843.57 crore deposit represents a significant compliance milestone, the fight is far from over.
The firm still faces:
- Reputational pressure
- Legal scrutiny
- Intense regulatory oversight in one of the world’s fastest-growing markets
Jane Street’s legal approach, SEBI’s review, and the possible repercussions for India’s financial system will all be closely watched in the coming weeks.
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Disclaimer:
The information provided here is purely for educational and informational purposes only and reflects our personal analysis and opinions. We are not SEBI-registered advisors. Please consult a qualified financial advisor before making any investment decisions.