The markets regulator, SEBI, has allowed the US high-frequency trading firm, Jane Street, to re-enter the Indian equity markets after completing the directive to establish an escrow account and deposit the alleged “unlawful gains” of Rs 4,844 crore before July 14.
SEBI has lifted their earlier ban on the firm that it imposed through an interim order. The regulator has explained the reasoning behind its directions under the ‘Balance of Convenience’ section of the order, specifically in paragraphs 59 through 61.
“In terms of para 62.11 of the interim order in the matter of index manipulation by Jane Street group dated July 3, 2025 (‘interim order’), upon compliance with the directions in clause 62.1 (creation of escrow account with a lien marked in favour of SEBI, for an amount of INR4,843,57,70,168/-), the directions stipulated in clauses 62.2, 62.3, 62.4, 62.5, 62.7, 62.8 and 62.10 of the interim order shall cease to apply,” read a press release.
“…the entities have been directed to cease and desist from directly or indirectly engaging in any fraudulent, manipulative or unfair trade practice or undertaking any activity, either directly or indirectly, that may be in breach of extant regulations, including by dealing in securities using any of the patterns identified or alluded to in the interim order. The entities have confirmed that they will comply with this,” SEBI added.
What happened earlier?
SEBI in an interim order on July 3 banned Jane Street from trading securities in the Indian market. The markets watchdog said that some of the firm’s trading strategies were manipulative, which led to losses for retail investors.
The regulator held $567 million of the company’s funds, stipulating that Jane Street could return to trading if an equal sum was placed in an account that allows the regulator control over the funds until the inquiry is completed.
On Monday, SEBI announced that it has instructed the National Stock Exchange of India and the Bombay Stock Exchange to keep a close watch on the actions of the US-based quantitative trading firm.
On Friday, the regulatory body emailed the company to notify them of the removal of the restrictions, according to a Reuters report.
BSE share price
Following the order, the share price of BSE jumped 2% to an intra-day high of Rs 2,570.90 as trading volumes may come back to normal levels.