Jane Street Deposits ₹4,843 Cr with SEBI, Seeks Easing of Trading Curbs

Mumbai: In compliance with SEBI’s interim order, US-based investment firm Jane Street Group (JS Group) has deposited a sum of over ₹4,843.57 crore in an escrow account, with a lien marked in favour of the Securities and Exchange Board of India (SEBI), the market regulator confirmed on Monday in an update on the interim order. "Jane Street has further requested SEBI that, following the creation of this escrow account in compliance with SEBI directions, certain conditional restrictions imposed under the interim order be lifted and that SEBI issue appropriate directions in this regard." The SEBI order had stated: "Entities shall not dispose of or alienate any of their assets/properties in India until such time the amount of unlawful gains is credited to the escrow account, except with the prior permission of SEBI." "This request is currently under examination by SEBI in accordance with the directions of the interim order," the regulator said. SEBI's order had included the following directions for the JS Group: pending detailed investigation, they must deposit illegal gains of over ₹4,843.57 crore, refrain from trading in the securities market, and all banks and depositories were directed to prevent debits of cash and securities from their accounts. JS Group now appears to be seeking the lifting of certain restrictions imposed on banks and depositories. Jane Street further stated (as per SEBI’s update) that this action has been undertaken by them without prejudice to their rights and remedies, which remain available to them in law and equity. Earlier, SEBI's investigation found Jane Street Group had prima facie engaged in illegal manipulation of securities comprising the BANK NIFTY and NIFTY indices during the period from August 31, 2023, to May 22, 2025. SEBI banned four entities of JS Group from the securities market and asked them to deposit unlawful gains of over ₹4,843.57 crore in an escrow account. “In fact, during the examination period, the net profits booked by FPIs in the JS Group amounted to ₹32,681 crore,” the SEBI interim order stated. “The total amount of unlawful gains earned by the JS Group from the alleged violations shall be impounded jointly and severally. Entities are directed to open an escrow account in a Scheduled Commercial Bank in India to deposit, jointly and severally, the aforesaid amount of unlawful gains, with a lien marked in favour of SEBI. The amount kept therein shall not be released without SEBI's permission,” SEBI said in its interim order issued on July 3. The size of the illegal gains, the continuing nature of violations, the ongoing investigation, and the risk of asset sale, repatriation, or diversion — which could defeat or delay enforcement — led to the impounding and debarment orders, SEBI said. Warnings had been issued to JS Group in early 2025 by NSE on SEBI’s instructions, as investigations had begun during the tenure of former SEBI Chairperson Madhabi Puri Buch. Jane Street was directed to cease and desist from undertaking certain trading patterns between April 2024 and February 2025. "When suspicions around the prima facie manipulative trading patterns of JS Group arose in early 2025, on SEBI’s instructions, in February 2025, NSE as a first-line regulator clearly and explicitly cautioned the JS Group to desist from taking on large risks in the index options markets, and to desist from trading patterns that raised concerns of manipulative behaviour. In turn, JS Group represented to NSE in February 2025 their commitment to adhere to all regulations," SEBI's interim order said.