Global trading giant Jane Street Group is set to resume its activities in Indian markets after complying with key conditions laid out by the Securities and Exchange Board of India (SEBI) in its interim order on alleged index manipulation.
According to an official SEBI statement released on Monday, Jane Street has deposited Rs 4,843.57 crore into an escrow account as directed in SEBI's July 3 interim order. The deposit fulfills a crucial requirement that previously led to trading restrictions against the firm for its alleged use of manipulative strategies in Indian stock markets.
Upon compliance with the escrow requirement, several interim trading restrictions on Jane Street have been lifted. This effectively means that Jane Street, which has denied any wrongdoing, can now resume trading activities in the country.
However, the reprieve comes with a stern warning. SEBI's latest communication emphasizes that Jane Street must refrain from any direct or indirect engagement in manipulative or unfair trade practices. This includes avoiding the use of any trading patterns flagged in the July 3 order. Jane Street has reportedly confirmed its intent to comply.
In addition, stock exchanges have been instructed to keep a close watch on Jane Street’s positions and trading behavior. As per Paragraph 62.13, exchanges are expected to ensure that the firm steers clear of any activity that could be seen as manipulative, at least until SEBI's full investigation concludes and a final order is passed.
The regulator has explained the reasoning behind its directions under the 'Balance of Convenience' section of the order, specifically in paragraphs 59 through 61. While Jane Street is now back in action in the Indian market, the shadow of ongoing scrutiny and regulatory oversight looms large.
SEBI reaffirmed its commitment to due process and market integrity in the release.