New Delhi: Markets regulator Sebi on Monday announced that it has allowed Jane Street, the US-based proprietary trading firm accused of market manipulation, to resume trading after the company deposited the mandated Rs 4,843.57 crore in an escrow account.
The move comes after Jane Street complied with Sebi’s directive, issued in the interim order dated July 3, to deposit the amount in an escrow account.
Following this compliance, the restriction on accessing the securities market no longer applies.
“In terms of para 62.11 of interim order in the matter of index manipulation by Jane Street group dated July 3, 2025, (interim order), upon compliance with the directions in clause 62.1 (creation of escrow account with a lien marked in favour of Sebi), for an amount of Rs 4,843.57 crore, the directions stipulated in clauses … of the interim order shall cease to apply,” Sebi said in a statement.
While lifting the trading restriction, Sebi said the entities involved have been directed to “cease and desist from directly or indirectly engaging in any fraudulent, manipulative or unfair trade practice”, or any activity that might breach existing regulations. This includes trading in securities using any of the patterns identified or mentioned in the interim order.
Jane Street and the related entities have confirmed their commitment to complying with these conditions.
To ensure strict oversight ahead, Sebi has also directed stock exchanges to monitor the dealings and positions of the Jane Street Group on an ongoing basis. This is to ensure that entities do not, either directly or indirectly, indulge in any manipulative activity till the completion of the investigation by Sebi and the consequent proceedings, if any.
The regulator also noted that the rationale for issuing these directions has been explained under the principle of ‘Balance of Convenience’.
The regulator said it remains committed to following due process and ensuring the integrity of the securities market.
Stock exchanges, for their part, have confirmed that they will comply with Sebi’s directive.
In an interim order on July 3, the regulator found Jane Street (JS) guilty of manipulating indices by taking bets in cash and futures & options markets simultaneously for making massive gains.
Sebi barred the hedge fund from accessing the market and impounded over Rs 4,843 crore in gains. The probe found that JS made a profit of Rs 36,671 crore on a net basis during the probe period from January 2023 to May 2025.
The regulator debarred JSI Investments, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading — entities collectively referred to as the Jane Street Group — from trading until further notice, while continuing its investigation.
In the same interim order, Sebi had mentioned that the restriction on market access would be lifted once the specified amount was deposited.
In line with this, Jane Street deposited Rs 4,843.57 crore into the escrow account last week and subsequently requested Sebi to lift certain restrictions.
Sebi acknowledged the receipt of the deposit and stated that the request was under examination.
Jane Street had also conveyed that its decision to comply with the deposit order was made “without prejudice to their rights and remedies”.
Established in 2000, Jane Street Group LLC is a global proprietary trading firm in the financial services industry. It employs more than 2,600 people across five offices in the US, Europe, and Asia, and conducts trading operations in 45 countries.
