India’s market watchdog, the Securities and Exchange Board of India (Sebi), has cleared the path for US-based trading firm Jane Street to resume operations in the domestic market, but not without caveats. The development, reported by Reuters citing sources, follows Jane Street’s compliance with Sebi’s interim order, which had accused the firm of market manipulation, particularly through “unlawful” trades in index options.
As part of the conditions, Jane Street last week deposited ₹4,844 crore in an escrow account, as directed by Sebi. Following this, the regulator sent an email to the firm on July 18, stating that the restrictions imposed in its July 3 interim order no longer apply.
However, the return is partial. According to Reuters, Jane Street has provided an undertaking to Sebi that it will not trade in options. In addition, the firm does not intend to participate in the cash segment until it has formally explained its trades to the regulator.
Sebi’s interim order had barred Jane Street from buying or selling any securities in India and froze ₹4,844 crore worth of the firm’s funds. The ban was conditional, with the firm given a could to resume trading if it deposited the equivalent amount in an escrow account under Sebi’s purview, pending the conclusion of the investigation.
The restrictions stem from an ongoing probe into Jane Street’s alleged attempts to manipulate benchmark indices by placing coordinated bets across the cash, futures, and options markets, using ‘unlawful’ strategies that Sebi believes led to disproportionate gains.
The regulator has alleged that Jane Street earned ₹36,671 crore in net profits during the period under scrutiny from January 2023 to May 2025. As a result, it ordered the firm’s suspension and impounded profits amounting to ₹4,843 crore.
Though the investigation is still underway, Sebi’s latest move marks a shift allowing Jane Street to re-enter the Indian market, albeit under tighter guardrails.
