U.S.-based hedge fund Jane Street has been granted permission by India’s market regulator to resume trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), nearly three weeks after being barred due to allegations of market manipulation. The permission comes with strict conditions set by the Securities and Exchange Board of India (SEBI), including the deposit of over ₹4,843 crore in an escrow account and heightened regulatory surveillance
India has permitted U.S.-based quantitative trading firm Jane Street to resume operations on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) beginning Tuesday, following nearly three weeks of suspension over allegations of market manipulation in index derivatives. The move comes after the Securities and Exchange Board of India (SEBI) issued a clarification late Monday, allowing the firm’s re-entry under strict conditions.
The regulatory relief was granted after Jane Street deposited ₹4,843.5 crore (approximately USD 580 million) into an escrow account, fulfilling a key requirement under SEBI’s interim order issued on July 3. This deposit is intended to safeguard the alleged gains from leaving the Indian jurisdiction while investigations continue.
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Jane Street had been accused of exploiting arbitrage opportunities across Nifty and Bank Nifty index options to make gains worth ₹43,289 crore between January 2023 and March 2025. SEBI’s interim order had barred four of its entities from participating in any trade that resembled manipulative practices.
Following the new directive, Jane Street has been permitted to participate in trading activities across both exchanges, including in the high-volume index options segment, on the condition that it refrains from any actions that could be interpreted as manipulative or fraudulent.
The exchanges have been directed to closely monitor Jane Street’s trades and positions. Notably, only a subset of the firm’s entities was active on BSE, but all relevant units are now cleared to operate under heightened surveillance.
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In its official communication, SEBI stated that “Jane Street entities have confirmed compliance with all required stipulations.” The regulator reiterated that the firm must cease and desist from any activity in breach of its regulations, even as its broader investigation continues. A final regulatory decision may still take several months.
On the market front, shares of BSE Ltd rose by nearly 3% to ₹2,521.3 on Monday ahead of the SEBI update, while unlisted shares of NSE saw gains between 2.5–5%. Investor sentiment appears cautiously optimistic as the reinstatement signals regulatory confidence in managing high-frequency global players under India’s tightening compliance framework.
The episode underlines SEBI’s evolving regulatory posture, balancing openness to foreign capital with strong enforcement against market irregularities. Jane Street’s return to Indian capital markets will now serve as a litmus test for regulatory compliance in India’s growing index derivatives segment.
