Jane Street Set to Resume Trading in India After SEBI Nod and Escrow Compliance

As per a news report, US trading firm Jane Street has re-entered Indian markets after settling regulatory dues of ₹4,844 crore in an escrow account. This move comes after the Securities and Exchange Board of India (SEBI) accused the firm of market manipulation via expiry-day index strategies.

SEBI Clears Jane Street to Restart Trading Operations

As per the Business Standard report, Jane Street received formal communication from SEBI lifting the trading ban that was imposed earlier in July. The firm had reportedly accumulated ₹36,502 crore in profits from January 2023 to March 2025, mostly from index options, prompting a probe. SEBI instructed the firm to deposit ₹4,844 crore into an escrow account by July 14 as a prerequisite for re-entry into the markets.

In-Depth Investigation and Alleged Manipulative Trading Patterns

SEBI’s investigation revealed Jane Street’s repeated use of aggressive trading strategies on expiry days in both Nifty and Bank Nifty indices. It found prima facie evidence of "pump-and-dump" tactics, including large morning purchases followed by reversals in the afternoon, which misled retail investors and distorted market signals.

Impact on Derivatives Market Turnover

Jane Street’s temporary absence had a noticeable effect. On July 17, index options premium turnover plunged to ₹39,625 crore a 35% drop from June’s average of ₹60,605 crore. This highlighted the firm’s dominance and influence in India’s F&O markets.

Read More: SEBI Launches Settlement Scheme for Expired VCFs: Starting from July 21!

Market and Regulatory Oversight Going Forward

While Jane Street has resumed trading, exchanges have been instructed to continue close surveillance of its market activities. The firm’s involvement with over 40 large-cap stocks, including giants like Reliance and Infosys, had previously raised concerns due to the volume and influence of its trades.

Conclusion

Jane Street’s return to Indian markets marks the resolution of a major regulatory confrontation. With the escrow deposit completed and the ban lifted, the firm begins a new chapter, albeit under strict oversight, as regulators aim to preserve market integrity and protect retail investor interests.

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