The shares of BSE surged 2% to an intraday high of Rs 2,570.90, while those of MCX jumped 1.14% to Rs 8,343.50.
The market regulator announced that Jane Street Group can resume trading in Indian securities after fulfilling compliance requirements, ending the trading suspension imposed earlier this month.
Sebi, in its statement on Monday, said it had directed stock exchanges to closely monitor the future dealings and positions of Jane Street Group on an ongoing basis to ensure that the firm does not engage in any manipulative activity until the conclusion of the ongoing investigation.
SEBI confirmed that exchanges have assured compliance with these directions.
The relief came after Jane Street deposited Rs 4,844 crore in an escrow account, with a lien marked in favour of Sebi, to comply with the regulator’s conditions. Sebi noted that upon the creation of this escrow account, the directions stipulated in the interim order dated July 3 shall cease to apply.In a communication to its staff shortly after the trading restrictions were imposed, Jane Street had said that Sebi’s interim order reflected a misunderstanding of standard hedging practices and the interrelationships between derivatives and underlying markets.The firm also contested Sebi’s claims that its activities were “prima facie manipulative,” stating that the regulator had overlooked the role of liquidity providers and arbitrageurs in the market.
The interim order had barred Jane Street from trading in Indian markets after Sebi alleged the firm engaged in manipulation in the local derivatives market.
Sebi’s order stipulated that the lifting of the ban is conditional upon Jane Street maintaining the Rs 4,844 crore escrow account and complying with all regulatory requirements. Meanwhile, exchanges have been tasked to maintain strict oversight of Jane Street’s trading activities to prevent any market misconduct.
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