Jane Street returns to Indian markets after ₹4,843cr deposit
What's the story
Jane Street, a US-based trading platform, has been given the green light to resume trading on Indian stock exchanges. The approval comes after the company complied with a key directive from the Securities and Exchange Board of India (SEBI). It deposited ₹4,843.5 crore in an escrow account as per SEBI's interim order.
Compliance details
Jane Street eligible to resume trading operations on Indian exchanges
Citin a source familiar with the matter, Moneycontrol reported that Jane Street Group had deposited ₹4,843.5 crore on Friday in compliance with SEBI's order. Another person aware of the proceedings said that now that the funds have been deposited in an escrow account and terms of the order have been fulfilled, Jane Street is eligible to resume trading operations on Indian exchanges.
Trading ban
What did SEBI's interim order say?
In its interim order, SEBI had directed entities within the Jane Street Group to deposit alleged illegal gains in an escrow account with a scheduled commercial bank in India. The account was to be marked with a lien in favor of the regulator. The order also barred the group from accessing the securities market, effectively prohibiting it from buying, selling or dealing in securities directly or indirectly.
Asset freeze
Restrictions lifted once Jane Street complied with deposit requirement
The SEBI order also directed banks, custodians, depositories, registrars and transfer agents to prevent any movement of Jane Street's assets until the deposit condition was met. However, it was clarified that these restrictions would be lifted once Jane Street complied with the deposit requirement. Despite this, SEBI explicitly warned the group against engaging in any fraudulent or manipulative trade practices or activities that could breach existing regulations by dealing in securities using patterns identified in its interim order.
Strategy uncertainty
Will the firm immediately return to trading?
While Jane Street has met the regulatory condition, it remains unclear if the firm will immediately return to trading or take a more cautious approach. SEBI has also directed Indian exchanges to closely monitor Jane Street's future dealings to ensure it does not indulge in any form of market manipulation. Jane Street has denied SEBI's allegations, claiming that the Indian capital markets regulator had a "misunderstanding" about a standard hedging practice.