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Jane Street deposits Rs 4,844 crore with Sebi, seeks easing of curbs
The high-frequency trading (HFT) firm has also approached Sebi with a request to lift 'certain conditional restrictions' imposed under the same order. Sebi, which invoked anti-fraud provisions in the case, said it would issue appropriate directions in this regard.
If the restrictions are eased, Jane Street may be able to resume its operations in the Indian market, where it is estimated to have executed Rs 44,358 crore worth of equity-options trades between January 2023 and March 2025.
Sebi order alleged manipulation of Bank Nifty index
In its 105-page interim order issued on July 3, Sebi had temporarily barred Jane Street, alleging manipulation of the widely tracked Bank Nifty index. The regulator also ordered the highest-ever impounding of Rs 4,844 crore, citing unlawful gains.
Jane Street has stated that its deposit of the impounded amount has been made 'without prejudice to their rights and remedies which remain available to them in law and equity'. The New York-headquartered firm is expected to soon file an appeal before the Securities Appellate Tribunal (SAT) challenging the Sebi order.
Sebi has charged the firm with violating the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations under the Sebi Act — a serious offence that carries significant penalties.
BSE recovers after sharp fall triggered by Sebi action
Shares of BSE rose nearly 4 per cent following the latest development. The scrip had previously declined 15 per cent after Sebi's action against Jane Street, which led to a more than 20 per cent drop in futures and options (F&O) turnover on the bourse.
According to sources, should Jane Street be allowed to re-enter the Indian markets, the firm is likely to face heightened monitoring from both Sebi and the stock exchanges.
'Sebi remains committed to following due process and ensuring the integrity of the securities market,' the regulator said in a statement.
Arbitrage strategy or market manipulation?
Sebi's order accused Jane Street of executing a strategy in which it aggressively bought Bank Nifty constituent stocks in the cash and futures segments to artificially inflate the index. It then sold those holdings later in the day, while holding large short positions in index options, thereby profiting from the subsequent fall in the index.
Jane Street, however, maintains that these trades were part of a standard 'index arbitrage' strategy — designed to exploit price differentials between related instruments, provide liquidity and enhance market efficiency.
In its internal communications, the firm described Sebi's order as 'extremely inflammatory' and claimed it disregards the legitimate role of arbitrageurs in modern financial markets.
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