Jane Street Takes Decisive Action: Billions Deposited as Battle with SEBI Heats Up

In a significant development, global trading powerhouse Jane Street has transferred a staggering Rs 4,844 crore into an escrow account designated for the Securities and Exchange Board of India (SEBI). This move comes as a direct response to a crucial condition outlined in the market regulator's interim order issued on July 3rd, effectively setting the stage for the next phase of this high-profile dispute.

An escrow account, for the uninitiated, serves as a secure holding mechanism for funds until specific, predetermined conditions are fully satisfied. In this instance, the deposit allows the US-based firm to petition for the immediate lifting of the trading restrictions imposed upon it, while crucially preserving its right to challenge SEBI's findings through legal channels. The regulator has confirmed that Jane Street's request to resume trading is currently under rigorous examination, aligning with the directives of its earlier order.

SEBI had previously barred the foreign fund from participating in the Indian market, citing allegations of manipulating both stock and derivatives segments to amass substantial illegal gains. The accusations against Jane Street, renowned for its sophisticated quant-based trading strategies, are grave. The firm was ordered to disgorge nearly Rs 4,850 crore – an amount representing alleged illicit gains accumulated from trading on the National Stock Exchange (NSE) between January 2023 and March 2025. This figure marks the largest disgorgement amount ever mandated by the Indian market watchdog.

In a statement released on Monday, SEBI acknowledged Jane Street's deposit, noting that the firm undertook this action "without prejudice to their rights and remedies which remain available to them in law and equity." The regulator reiterated its unwavering commitment to due process and its paramount responsibility to uphold the integrity of the Indian securities market.

For its part, Jane Street steadfastly maintains that its trading strategies were entirely legitimate. The firm asserts that the trading patterns flagged as suspicious by SEBI are, in fact, routine practices for high-frequency trading firms operating across global markets. The company is widely expected to challenge SEBI's interim order before the Securities Appellate Tribunal, indicating a protracted legal battle ahead.