Global trading firm Jane Street has deposited ₹4,800 crore in an escrow account as directed by the Securities and Exchange Board of India (SEBI). This step comes in the wake of the regulatory body’s action against the firm over allegations related to large-scale options trading irregularities in Indian derivatives markets.
Regulatory Background
SEBI had earlier imposed trading restrictions on Jane Street, alleging violations tied to potential front-running and other market manipulation tactics. As part of the compliance process, Jane Street was mandated to deposit funds in escrow while a detailed investigation continued. The firm’s deposit fulfills one of the core preconditions laid out by SEBI in its interim order.
No Immediate Plans to Resume Trading
Despite the escrow compliance, Jane Street has reportedly informed SEBI that it does not intend to resume trading in Indian markets immediately. Sources suggest the firm is focused on clearing its regulatory position and is keen to engage. With SEBI on clarifying concerns raised in the ongoing probe.
Request to Ease Restrictions
In parallel, Jane Street has formally requested SEBI to lift or relax certain operational restrictions currently in place. These include limitations on accessing Indian derivatives markets and maintaining open positions. The firm has expressed its willingness to cooperate fully and transparently with Indian regulators throughout the resolution process.
Market Impact
The incident has stirred concerns across the trading ecosystem, especially in the options and derivatives space. Several domestic institutional investors and proprietary trading desks have reported lower liquidity and elevated volatility following the regulatory action.
As SEBI continues its review, market participants await further updates on whether restrictions will be lifted and what long-term impact this case may have on foreign participation in India’s capital markets.
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