MC EXCLUSIVE Back in the game: Jane Street deposits Rs 4,843.5 crore as directed by Sebi, can trade again

Jane Street complies with Sebi order

Global proprietary trading powerhouse Jane Street Group can restart trading in Indian equity markets as it has complied with a key directive from the Securities and Exchange Board of India (Sebi). The firm has deposited Rs 4,843.5 crore in an escrow account, fulfilling the core requirement laid out in Sebi’s interim order dated July 3, 2025, according to highly placed sources.

A source familiar with the matter confirmed, “Jane Street Group deposited Rs 4,843.5 crore on Friday in compliance with the Sebi order.” Another person aware of the proceedings added, “With the deposit made in an escrow account and the order’s terms met, Jane Street can now resume its trading operations on the exchanges.”

Later in the morning, SEBI confirmed that Jane Street has complied with its order to deposit Rs 4,843.5 crore in an escrow account. The market regulator also mentioned that the request by Jane Street for removal of certain conditional restrictions is under consideration.

SEBI is still investigating the trades of Jane Street Group, which will include trades in other indices and stocks, sources told moneycontrol. SEBIs investigation may take additional 6-7 months to complete. Also, Jane Street Group will have to comply with SEBI directive of not using strategies which are considered manipulative.

Deposit made, trading can follow

In its interim order, Sebi had directed Jane Street Group entities to deposit the alleged unlawful gains in an escrow account with a scheduled commercial bank in India, with a lien in favour of the regulator (Clause 62.1). Clause 62.2 of the order had prohibited the group from accessing the securities market and barred it from buying, selling, or dealing in securities, either directly or indirectly.

The order also directed banks, custodians, depositories, registrars, and transfer agents to prevent any movement of Jane Street’s assets until the deposit was made.

However, the order clarified that these restrictions — including the trading ban — would cease once the firm complied and deposited the specified amount (Clause 62.11). That said, Sebi explicitly instructed the group to “cease and desist from directly or indirectly engaging in any fraudulent, manipulative or unfair trade practice or undertaking any activity... that may be in breach of extant regulations, including by dealing in securities using any of the patterns identified or alluded to in this order.”

In other words, Jane Street is not allowed to deploy the trading strategy outlined by Sebi in its interim order.

Also read: How Jane Street saga unfolded and SEBI passed order?

What next

While Jane Street has met the regulatory condition, it is unclear whether the firm will immediately return to trading or take a more cautious approach, gauging market sentiment and regulatory signals before reactivating its India strategy.

Sebi, in its order, emphasized that Indian exchanges should closely monitor the firm’s future dealings to ensure it does not indulge in any form of market manipulation.

Emails sent to both Sebi and Jane Street Group seeking comment remained unanswered at the time of publication. Responses will be included once received.

Sebi had also noted that if the entities submit justiciable reasons countering the interim order’s conclusions, a post-hearing decision may revoke the restrictions. Furthermore, if a detailed investigation finds that no manipulation occurred, the impounded gains will be released and the firm will be free to continue trading in India without restrictions.

Also read: How Jane Street allegedly manipulated index closing on expiry days

Though Jane Street has disputed Sebi’s allegations. In a memo to its employees and reported by media, Jane Street noted that said Indian capital market regulator has a “misunderstanding' about a standard hedging practice.