SEBI has given the firm 21 days to respond to the order and request a personal hearing, should it wish to contest the findings.
The Wall Street firm is expected to challenge SEBI’s order by approaching the Securities Appellate Tribunal (SAT) in the coming days. (File)
New York-based proprietary trading firm Jane Street, which was recently barred from the Indian market, has deposited Rs 4,843.57 crore (approximately $567 million) into escrow accounts in compliance with an order from the Securities and Exchange Board of India (SEBI).
Mumbai, July 14, 2025 – In a significant development in the ongoing regulatory action, New York-based quantitative trading firm Jane Street has deposited ₹4,843.57 crore (approximately $567 million) in an escrow account marked in favour of the Securities and Exchange Board of India (SEBI). The firm, recently banned from trading Indian securities, is now seeking relief from the interim curbs imposed earlier this month.
The deposit is in compliance with SEBI’s interim order that alleged market manipulation of the Bank Nifty index and unlawful earnings estimated at around ₹4,800 crore. Jane Street’s trading activities had been suspended as part of SEBI’s broader crackdown on offshore entities exploiting India’s derivatives markets.
“Jane Street has further requested SEBI that, following the creation of this escrow account in compliance with SEBI directions, certain conditional restrictions imposed under the interim order be lifted and that SEBI issue appropriate directions in this regard,” SEBI stated in a press release.
The regulator also confirmed that the firm has undertaken this action “without prejudice to their rights and remedies available in law and equity,” signaling the firm’s intention to preserve its legal options even as it complies with regulatory directives.
SEBI’s interim order, issued earlier this month, had barred Jane Street and other foreign portfolio investors (FPIs) from trading in the Indian securities markets. The order was issued following an investigation into alleged manipulation of derivatives contracts, specifically those linked to the Bank Nifty index, which reportedly resulted in disproportionate and unfair profits.
As part of the ongoing proceedings, SEBI had allowed a 21-day window for the firm to respond or seek a personal hearing. Jane Street’s latest move to place funds in escrow appears aimed at demonstrating compliance and good faith, while it awaits further direction from the regulator.
Market Implications & Next Steps
Jane Street’s request to ease restrictions will now be evaluated by SEBI, which stated it remains committed to due process and upholding market integrity. The outcome will likely have wide implications, especially for other FPIs operating in the Indian markets under similar scrutiny.
With the funds now secured in escrow, market watchers anticipate that SEBI may consider lifting partial trading curbs, particularly in equity or non-derivative segments, though no formal decision has been communicated yet.