Global trading giant Jane Street Group has reportedly parked Rs 4,843.5 crore into an escrow account—a key step toward meeting regulatory conditions laid out by the Securities and Exchange Board of India (Sebi), according to Reuters. The move follows Sebi’s recent action on July 3, when the market watchdog barred four of Jane Street’s entities from trading in Indian market
SEBI Action Against Jane Street
The ban came alongside an order to impound Rs 4,843 crore, which Sebi said represented unlawful gains made by the firm. According to the regulator, the US-based quantitative trading powerhouse, along with its affiliates—including two overseas units—was involved in systematically manipulating key Indian indices. Over a period of two years leading up to May, SEBI alleges the firm distorted prices in the Nifty 50, Bank Nifty, FinNifty, and Midcap Nifty indices by influencing both the stocks within these indices and their derivatives.
Jane Street has no plans to trade in Indian options, a source told Reuters on Monday. Another source added that the Rs 4,843 crore was deposited as a gesture of good faith. “The firm continues to challenge the order and will soon submit a formal response disputing the allegations,” the person said.
The deposit into the escrow account marks a significant step in Jane Street’s efforts to comply with regulatory demands as it seeks its way back into thriving Indian market.
Options Market Slowdown
Trading in India’s options market has seen a noticeable slowdown, especially during last few sessions, following recent regulatory action by SEBI against Jane Street. The premium turnover in index options on the NSE has seen a significant decline over the past three weekly expiry sessions. On June 26, it stood at Rs 80,731 crore, but by July 3—the day SEBI issued its order against Jane Street—it had dropped to Rs 61,511 crore, marking a sharp fall in activity.
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