Global trading firm Jane Street has deposited a massive sum of Rs4,843.57 crore into an escrow account, marking a significant step in complying with Securities and Exchange Board of India’s
(SEBI) interim order dated 3 July 2025. The market regulator confirmed the transfer on Monday, stating that the amount has been credited with a lien in SEBI’s favour, though the firm continues to assert its legal rights and remedies. Further, contrary to media reports, Jane Street is not yet allowed to resume trading in the Indian stock market. While Jane Street is seeking partial relief from trading restrictions, SEBI stated that the issue is 'under examination in accordance with the directions of the interim order'.
In a statement issued in response to media queries, SEBI says, “Jane Street has informed SEBI that in compliance with paragraph 62.1 of the 3 July 2025 interim order, a sum of Rs4,843.57 crore has been credited to an escrow account with a lien marked in favour of SEBI.”
The regulator added that the firm’s compliance was 'without prejudice to their rights and remedies which remain available to them in law and equity'.
Jane Street has also requested SEBI to reconsider and potentially lift certain restrictions imposed on its trading activities under the interim order, now that it has set aside the alleged wrongful gains in escrow.
“This request is currently under examination,” SEBI says, noting that it is following due process.
Allegations of Market Manipulation
The move comes in the wake of SEBI’s explosive 3rd July interim order which accused Jane Street and affiliates of 'massively rigging' India's derivatives market, specifically targeting Bank Nifty options. The order alleged that the firm employed high-frequency trading (HFT) strategies to manipulate prices, thereby generating unlawful gains at the cost of market integrity.
As
reported by Moneylife, SEBI’s investigations uncovered that Jane Street’s algorithms—programmed for latency arbitrage and aggressive quote stuffing—disrupted fair price discovery during the expiry hours of Bank Nifty derivatives. The scheme allegedly exploited millisecond-level speed advantages to front-run other market participants and trigger misleading price signals.
SEBI’s interim order named two of Jane Street’s India-based entities—Jane Street India Pvt Ltd and Jane Street Technologies Pvt Ltd—alongside its foreign affiliates. It found that the group collectively made wrongful gains totalling Rs4,843.57 crore between 2021 and 2023. These profits have now been sequestered in escrow.
Conditional Relief under Consideration
Now that the funds have been escrowed, Jane Street is seeking partial relief from trading restrictions, though SEBI has not disclosed the specific conditions or timeline for any possible relaxation. The regulator stated only that the matter is 'under examination in accordance with the directions of the interim order'.
According to experts by complying 'without prejudice', Jane Street is preserving its right to challenge the interim findings in court or during final adjudication. However, setting aside such a large amount suggests that the firm is keen on resuming business operations in India which have been significantly curtailed by SEBI’s ban.
SEBI's Broader Crackdown
The interim order against Jane Street is one of the most high-profile enforcement actions taken by SEBI in recent years.
SEBI has reiterated its commitment to due process and market integrity. “SEBI remains committed to following due process and ensuring the integrity of the securities market,” the regulator says in its latest update.
Meanwhile, market participants are closely watching the case, as its outcome could set important precedents for HFT regulation, data access norms and institutional accountability in algorithmic trading.
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