Market regulator SEBI has allowed Jane Street to restart trading after the US high-frequency trading firm deposited Rs 4,844 crore in an escrow account, two sources aware of the matter told Reuters on July 21.
The regulator sent an email to the firm on July 18 in which it said that following the deposit of the money the restrictions imposed by its interim order are no longer applicable, reported Reuters citing sources who declined to be named because they are not authorised to speak to media.
However, Jane Street's return could be a bit low-key as it will not trade in options, reported Reuters citing one of the two sources.
"While the firm has been allowed to resume trading in India, it has given an undertaking to SEBI that it will not trade in options. The firm also does not intend to trade in cash till it has explained its trades to SEBI," a source told Reuters.
In an interim order issued on July 3, the Securities and Exchange Board of India (SEBI) had barred the firm from buying and selling securities in the Indian market and froze Rs 4,844 crore of its funds. Jane Street could resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until its investigation is complete, the order had stated.
The two exchanges are yet to facilitate Jane Street's buying and selling of Indian securities, said one of the sources.
On July 3, the market regulator found Jane Street, a New York-based hedge fund, guilty of manipulating the indices by taking bets in the cash, and, futures and options markets simultaneously for making handsome gains.
It had suspended the hedge fund from accessing the market and impounded over Rs 4,843 crore in gains. The probe has found that Jane Street made a profit of Rs 36,671 crore on a net basis during the probe period from January 2023-May 2025.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
