India’s securities regulator has allowed Jane Street Group LLC to resume trading in the country’s stock market after the firm deposited 48.4 billion rupees ($564 million) in alleged “unlawful gains” into an escrow account, the Business Standard reported Monday, citing people it didn’t identify.
The Securities and Exchange Board of India informed Jane Street in an email last week that the trading ban had been lifted, according to the report. In a statement on July 14, the regulator had said it was reviewing a request by the US trading firm to ease restrictions. Jane Street doesn’t intend to immediately return to India’s options market, Bloomberg News reported on the day.
The report on the lifting of curbs comes as SEBI continues its probe into the Wall Street firm’s strategies in India, which the regulator deemed manipulative in its bombshell 105-page order earlier this month. Jane Street has denied the allegations. The case has gripped the financial industry, pitting the trading giant against regulators in the world’s largest equity derivatives market by contracts.
In its initial order, the regulator said its investigation into the firm’s trades in the options, cash and futures market will continue. The probes will include activity involving the flagship indexes of National Stock Exchange of India Ltd. and BSE Ltd., Bloomberg News reported earlier this month.
The New York-based firm’s next move remains unclear. It can appeal the SEBI’s allegation at the Securities Appellate Tribunal in Mumbai. Jane Street is also approaching a deadline this week for sending a written response to the regulator to defend itself and avail a personal hearing.
Jane Street made about 365 billion rupees ($4.3 billion) in overall gains from trading in Indian derivatives and the cash market during the period between January 2023 and March 2025, according to SEBI. The firm also traded in the local cash and equity futures before the ban via a local arm and units registered outside the country, according to the order.
Jane Street told staff days after the regulator’s clampdown that it strongly rejected the premise and substance of SEBI’s interim order, and that it was preparing a formal response and assessing legal options. The firm said that what the regulator called “intraday index manipulation” was an example of basic index arbitrage trading, a practice common in financial markets.
<h3>📬 Subscribe to our newsletter</h3>
<p>Get notified whenever we publish a new blog post.</p>