SEBI to Jane Street: Resume Trading but ‘Cease All Unfair Practices’ Amid Escrow Clearance

The Securities and Exchange Board of India (SEBI) has permitted US-based proprietary trading firm Jane Street to resume trading in Indian markets, subject to certain restrictions. The move comes after the firm deposited Rs 4,863 crore in an escrow account as directed in SEBI’s interim order dated July 3, 2025.

Market experts welcomed the move, calling it a balanced step that safeguards market integrity while upholding investor confidence.

Corporate lawyer H.P. Ranina praised SEBI’s decision, calling it both objective and fair. “This shows SEBI is taking a reasonable view. The deposit is only a temporary measure, and if Jane Street is later found not guilty, the amount can be refunded,” he told ANI. He also stated that was a positive message for both domestic and international investors.

Market analyst Sunil Shah echoed this view, appreciating the regulator’s protection of retail investors. “SEBI has taken a strong stand. I hope it continues to monitor such cases to prevent large institutions from taking unfair advantage of small investors,” Shah told ANI. 

SEBI, while granting permission to resume trading, has asked stock exchanges to keep a close watch on Jane Street’s activities to prevent any market manipulation during the ongoing investigation.

On July 14, Jane Street had voluntarily deposited Rs 4,843.57 crore in an escrow account and requested permission to restart trading, SEBI said in a statement. 

The SEBI, on April 3, had accused global trading giant Jane Street Group of manipulating India’s stock market—specifically the BANKNIFTY index—to make massive profits. According to SEBI, Jane Street used unfair trading strategies to influence market prices and earned over Rs 36,500 crore in profits, mainly from index options trading.

Also Read: SEBI Banned Jane Street After Rs 36,500 Cr Windfall in India - Here’s What You Need to Know | Republic World
 

BSE stock up

Following this decision, BSE's share price went up by nearly 2% to reach an intra-day high of Rs 2570 from the previous close of Rs 2521.30.