Jane Street Resumes India Trading After ₹4,843.5 Cr Escrow Deposit: What It Means

Global trading central Jane Street is now free to resume trading in Indian equity markets after depositing ₹4,843.5 crore in an escrow account, as mandated by the Securities and Exchange Board of India (SEBI). This move complies with SEBI's interim order dated July 3, 2025, which temporarily barred the firm from market activities due to alleged manipulation in index derivatives.

According to sources familiar with the matter, the deposit was made on Friday, satisfying a key condition of SEBI's order. "Jane Street Group deposited ₹4,843.5 crore in compliance with the SEBI directive" (source: Moneycontrol). Another insider added, "With the money in escrow and conditions met, Jane Street can resume its trading operations on Indian stock exchanges."

Background of the SEBI Action

In its July 3 interim order, SEBI alleged that Jane Street had earned unlawful gains through suspicious trading patterns in stock index contracts. The regulator ordered the impounding of these profits and imposed a trading ban until the firm deposited the amount in an escrow account with a lien in SEBI's favour.

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SEBI also instructed all financial intermediaries—banks, custodians, registrars, and depositories—to prevent any movement of Jane Street's assets until the deposit was completed. However, the order included a provision stating that the restrictions would be lifted once the deposit was made.

Restrictions Still Apply on Certain Strategies

While Jane Street can trade again, SEBI has issued a strong warning. The firm is explicitly prohibited from using the specific trading strategies that SEBI identified as manipulative. The watchdog further cautioned exchanges to closely monitor Jane Street's future activities to ensure compliance with all regulations.

This means Jane Street must modify its India trading approach significantly and avoid any activity deemed unfair or manipulative.

Future Course and Legal Position

It is still uncertain whether Jane Street will immediately return to full-scale operations in India or adopt a wait-and-watch strategy. The firm has denied any wrongdoing and, in an internal memo, suggested SEBI misinterpreted a standard hedging method as manipulation.

SEBI's order leaves room for revision, stating that if Jane Street presents valid justifications and if further investigation proves there was no manipulation, the deposited funds may be released. The firm could resume trading without any limitations.

Conclusion

Jane Street's compliance with SEBI's conditions marks a critical development in a high-stakes regulatory standoff. While the firm is allowed back into the Indian markets, the road ahead may still be uncertain. Market observers await SEBI's final verdict and Jane Street's next moves