Jane Street Resume Trading: Sebi allows Jane Street to resume trading, but sets conditions

Mumbai: The Securities and Exchange Board of India on Monday lifted the trading ban on Jane Street with conditions. The regulator has directed stock exchanges to closely monitor future dealings and positions of Jane Street Group on an ongoing basis, to ensure that the entities do not indulge in any kind of manipulative activity till the completion of its investigation. “Exchanges have confirmed that they will comply with this,” Sebi said in a statement on Monday.

The relief comes after Jane Street deposited ₹4,844 crore in an escrow account to comply with Sebi’s order in which it had banned the New York trading firm for alleged manipulation in the local derivatives market.

“In terms of interim order in matter of index manipulation by Jane Street group dated July 3, 2025, upon compliance with the directions…(creation of escrow account with a lien marked in favour of Sebi, for an amount of ₹4,844 crore), the directions stipulated in clauses …of interim order shall cease to apply,” Sebi said.

Jane Street had told its staff on July 6-3 days after the regulatory curbs were imposed-that Sebi’s order reflects a ‘misunderstanding of standard hedging practices and the interrelationships between derivative and underlying markets’. It had then said Sebi’s claim that the firm’s activity is “prima facie manipulative” disregarded the role of liquidity providers and arbitrageurs in markets.