Jane Street Resumes India Trading Post ₹4,844 Cr SEBI Escrow

India’s markets regulator, the Securities and Exchange Board of India (SEBI), has lifted its trading ban on Jane Street Group LLC after the US-based firm deposited ₹4,843–4,844 crore (US$567 million) of alleged “unlawful gains” into an escrow account. This deposit meets the key condition laid out in an interim SEBI order from 3 July that prohibited Jane Street from trading in Indian markets until the amount was secured under regulatory oversight.

According to sources cited by Reuters and Bloomberg, SEBI confirmed via email last Friday that trading restrictions have been removed now that the escrow deposit has been made. However, Jane Street has agreed to refrain from options and cash market trading until it clarifies its alleged manipulative trades to SEBI. The NSE and BSE have been instructed to closely monitor Jane Street’s future activities before reactivating its access.

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Background and Allegations

SEBI’s ban stemmed from findings that Jane Street, through its units—including JSI Investments and subsidiaries based in Singapore and Asia—gained approximately ₹36,500 crore via expiry-day index derivatives between January 2023 and March 2025, out of ₹43,289 crore in profits from index options in that period. SEBI’s interim order accused the firm of using “intraday index manipulation” and “marking the close” strategies to distort pricing for Bank Nifty futures and options.

Jane Street has strongly denied these allegations, asserting that its trades were standard index arbitrage. The firm said the regulator misunderstood common global practices and is preparing a formal response. It may also appeal to the Securities Appellate Tribunal (SAT).

Market and Regulatory Reaction

Following news of the escrow deposit and anticipated resumption of trading, BSE shares soared nearly 3% to ₹2,519 on the NSE. Meanwhile, options market volumes had slumped over 40% in the wake of Jane Street's trading ban. Market watchers say SEBI’s heightened surveillance should deter similar practices in the future.

What Comes Next

Although the escrow deposit allows SEBI to lift the ban, its investigation remains active. The regulator continues probing Jane Street’s trading across multiple indices and may impose further penalties, potentially up to three times the allegedly illicit gains if wrongdoing is confirmed. Exchanges have been directed to monitor Jane Street’s trades, ensuring no recurrence of suspect behaviour.

Jane Street still needs to submit a written defence within 21 days of the interim order and may request a personal hearing. It has also formally asked SEBI to lift remaining conditional restrictions and is currently awaiting the regulator’s decision.

Conclusion

Jane Street’s ₹4,844 crore escrow deposit has allowed it to re-enter India’s capital markets under strict conditions. While the firm awaits SEBI’s final decision on its formal defence and appeal, exchanges and regulators will continue vigilant monitoring. The outcome of the ongoing investigation may redefine regulatory oversight of high-frequency and cross‑segment trading in India’s derivatives market.