U.S. quant trading giant Jane Street has deposited approximately ₹4,843.5 crore (USD 567 million) into an escrow account, complying with a Securities and Exchange Board of India (SEBI) directive. This move clears the way for the firm to resume trading in Indian markets, pending regulatory approval, though it must still abstain from options trading until the probe concludes
🔍 4 Key Details
1️⃣ Ban follows serious allegations
SEBI barred Jane Street on July 3, alleging it manipulated the Bank Nifty index by inflating stock prices through cash/futures trades, only to profit from short positions in options—resulting in alleged illegal gains of ₹4,844 crore
2️⃣ Escrow deposit meets precondition
Under SEBI’s interim order, Jane Street had to deposit the disputed funds, secured by a lien. With this done, SEBI is now examining the request to lift the trading ban The Economic Times
3️⃣ Legal rights preserved
The deposit was made “without prejudice to their rights and remedies in law”—signalling that Jane Street will continue to contest SEBI’s claims through legal channels
4️⃣ Limited return to market
While equity and futures trading may resume soon, options trading remains suspended until the probe is resolved
🌍 Broader implications
- Market stabilization: The return of a significant liquidity provider may bolster the derivatives market, which saw volumes fall ~20% post-ban .
- Regulatory precedent: SEBI’s action underscores its growing assertiveness toward high-frequency trading and market integrity.
- Ongoing scrutiny: The investigation will likely extend to other indices like Sensex, Finnifty, and mid-cap derivatives, signaling continued oversight
- Global attention: Jane Street, which generated ~$4 billion in India between 2023 and 2025, faces major reputational risk and may draw scrutiny from other jurisdictions
✅ Bottom Line
With the ₹4,843 crore escrow deposit, Jane Street has satisfied SEBI’s conditions and is now seeking approval to resume trading in Indian equities and futures. While options trading remains on hold and controversies persist, this marks a pivotal step in resolving one of India’s biggest market manipulation cases.
