U.S.-based proprietary trading firm Jane Street Group has deposited ₹4,843 crore in an escrow account with SEBI and is seeking partial relief from trading restrictions imposed after the firm was accused of market manipulation. SEBI confirmed it is examining the request as per its interim order.
Jane Street Group, a U.S.-based high-frequency proprietary trading firm, has deposited ₹4,843 crore into an escrow account with a lien in favor of the Securities and Exchange Board of India (SEBI). This move comes amid ongoing legal and regulatory proceedings related to allegations of market manipulation in the Indian derivatives segment.
The firm has now formally requested SEBI to reconsider and lift certain conditional restrictions imposed in the interim order issued on July 5, which banned Jane Street from trading in Indian securities markets and froze assets worth $567 million USD. SEBI had alleged that the firm manipulated the Bank Nifty index by executing simultaneous trades—buying large volumes of constituent stocks while shorting index options to create “artificial support.”
Jane Street emphasized that the escrow deposit was made “without prejudice to its rights and remedies available under law and equity”, and that the firm remains committed to clearing its name. The firm’s statement also highlighted its ongoing cooperation with SEBI despite earlier claims of being “rebuffed” during engagement attempts.
In a recent update, SEBI confirmed the deposit and acknowledged that Jane Street’s request for lifting restrictions is “currently under examination in accordance with the directions of the interim order.”
The market regulator reaffirmed its position, stating, “SEBI remains committed to following due process and ensuring the integrity of the securities market.”
This development follows Jane Street’s sharp rebuttal earlier this month, where the firm defended its actions as standard index arbitrage—an accepted practice in global markets. It also plans to challenge SEBI’s interim order legally and may take the matter to the Securities Appellate Tribunal (SAT).
The case has drawn attention from other foreign trading firms operating in India such as Citadel Securities, IMC Trading, Millennium Management, and Optiver, amid growing scrutiny in India’s booming equity derivatives market.
With over ₹12.4 billion USD in retail trading losses reported in FY24, SEBI Chairman Tuhin Kanta Pandey has indicated tighter oversight, though he suggested Jane Street’s case may remain isolated.
As legal proceedings unfold, the case could set a precedent for how India’s market regulator deals with algorithmic and arbitrage-driven foreign players in one of the world’s most active derivatives markets.
Also Read: Jane Street’s Market Manipulation in India - Simplified For Everyday Indian Investors
