US-based trading firm Jane Street Group LLC has deposited Rs 4,843.5 crore (approximately $564 million USD) in an escrow account in India. This move comes after the Securities and Exchange Board of India (SEBI) issued an order on July 3, directing the firm to make the deposit over allegations of manipulative trading practices.
Why Did SEBI Ban Jane Street?
SEBI accused Jane Street, a Wall Street proprietary trading giant, of intra-day index manipulation in the Indian stock market. According to SEBI, the firm made aggressive and unhedged trades in the Nifty Bank options segment. These trades allegedly had no plausible economic reason and appeared to be carried out with the intent to distort closing prices — a strategy known in trading as “marking the close.”
Because of this, SEBI had banned Jane Street from participating in the Indian securities market until the firm made the required deposit into an escrow account.
How Much Profit Did Jane Street Make?
SEBI’s interim findings revealed that Jane Street earned Rs 43,289.33 crore in profits from trading index options on Indian exchanges between January 1, 2023, and March 31, 2025. The report also mentioned that the firm and its associated entities earned over Rs 36,502 crore from index derivative trades in the last two years.
These numbers have raised serious concerns about the fairness and transparency of market activities by global firms operating in India.
Jane Street’s Response
Although Jane Street has complied with SEBI’s order by depositing the required amount, reports suggest the firm has no immediate plans to resume trading in India’s options market. This pause is likely due to the seriousness of the allegations and ongoing regulatory scrutiny.
What Is “Marking the Close”?
“Marking the close” is a trading strategy where firms place aggressive buy or sell orders in the final minutes of the trading session to influence the closing price of an index or stock. Such practices are considered market manipulation if done intentionally, and regulators across the world take strong action against it.
Jane Street Deposits Rs 4,843 Crore as Directed by SEBI; Requests Relief from Restrictions
The Securities and Exchange Board of India (SEBI) has confirmed that global trading firm Jane Street has deposited Rs 4,843 crore into an escrow account, following SEBI’s interim order issued on July 3.
SEBI mentioned that Jane Street has made this deposit “without prejudice to its rights and legal options”, meaning the firm still holds the right to take legal steps if needed.
In addition, Jane Street has asked SEBI to relax some of the conditions that were imposed in the interim order. SEBI stated that this request is currently under review and will be examined as per the rules laid out in the interim order.
Key Takeaways
Jane Street is a major Wall Street trading firm known for high-frequency and algorithmic trading.
SEBI banned Jane Street for manipulating trades in Bank Nifty options.
The firm deposited over Rs 4,843 crore in an escrow account as directed by SEBI.
SEBI accused the firm of earning Rs 43,289 crore in illegal profits.
The case highlights the need for tight surveillance of foreign trading firms in Indian markets.
Be First to Comment