Key Facts
• July 21: SEBI lifted trading restrictions on Jane Street.
• $567 million deposited into an escrow account by Jane Street.
• SEBI had banned Jane Street for manipulative trading strategies harming retail investors.
• SEBI froze $567 million in alleged illicit profits from Jane Street.
• Trading resumed only after equivalent funds were deposited in escrow.
• SEBI instructed NSE and BSE to monitor Jane Street’s activities closely.
• July 18: SEBI notified Jane Street of the lifted restrictions via email.
• Jane Street pledged not to engage in options trading in India.
• The firm will refrain from cash trading until SEBI reviews its transactions.
• NSE and BSE have yet to process Jane Street’s trading activities.
Summary
India’s Securities and Exchange Board (SEBI) has lifted trading restrictions on U.S.-based proprietary trading firm Jane Street after the company deposited $567 million into an escrow account. The restrictions were initially imposed due to allegations of manipulative trading strategies that caused losses to retail investors. SEBI had frozen $567 million in alleged illicit profits and required an equivalent deposit for trading to resume. While Jane Street has been permitted to trade, it has committed to refraining from options trading and will delay cash trading until SEBI reviews its transactions. SEBI has directed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) to closely monitor the firm’s activities. As of now, both exchanges have yet to process Jane Street’s trading operations.
