Markets regulator the Securities and Exchange Board of India (Sebi) on Monday confirmed that the New York-based trading firm Jane Street has deposited ₹4,843.58 crore into an escrow account, as directed under the interim order issued earlier this month. Following the deposit, the firm has requested Sebi to lift trading restrictions imposed on its participation in the Indian equity markets.

“This is to confirm that Jane Street has informed Sebi that in compliance with paragraph 62.1 of the July 3, 2025 Interim Order, a sum of INR 4,843,57,70,168/- has been credited to an escrow account with a lien marked in favour of SEBI,” the regulator notified today.

Following this deposit, Jane Street has requested Sebi to consider lifting certain conditional restrictions imposed under the interim order. The firm has urged the regulator to issue appropriate directions that would ease constraints on its trading activities, citing compliance with the directive as the basis for reconsideration.

“They (Jane Street) have further stated that this action has been undertaken by them without prejudice to their rights and remedies which remain available to them in law and equity,” Sebi said in a release today.

Sebi, in response, confirmed that the request is under examination and reiterated its commitment to due process and to ensuring the integrity of the securities market.

In an interim order on July 3, 2025, Sebi had barred the U.S.-based investment firm and its group entities from accessing the securities market in India, while directing them to submit ₹4,843.57 crore in alleged unlawful gains. 

“The total amount of unlawful gains earned by the JS Group from the alleged violations, i.e., ₹4,843,57,70,168, shall be impounded, jointly and severally. Entities are directed to open an escrow account in a scheduled commercial bank in India to deposit jointly and severally the aforesaid amount of unlawful gains,” Sebi’s 105-page interim order had stated.

The Jane Street Group entities operating in India—JSI Investments, JSI2 Investments, Jane Street Singapore, and Jane Street Asia Trading—allegedly manipulated Bank Nifty, the 12-stock banking index, and benefitted in unlawful gains worth ₹4,843.6 crore, as per Sebi.

“JS Group first aggressively bought significant quantities of BANKNIFTY underlying constituent stocks and futures, temporarily pushing up or lending considerable support to the BANKNIFTY index. In the second patch of the day, as has again been demonstrated by data and analysis, JS Group was seen to practically and effectively reverse all of this buying activity from the first patch, by aggressively selling large quantities of BANKNIFTY underlying constituent stocks and futures,” the Sebi order by G. Ananth Narayan, Whole Time Member, stated.

Soon after market regulator barred Jane Street group, Chairman Tuhin Kanta Pandey hinted that the regulator was increasing its surveillance to deeply analyse manipulation in derivatives trading. His comments bear significance as the country boasts the world's largest derivatives market.

According to a recent Sebi report, which came after action against Jane Street Group, individual traders collectively lost over ₹2.87 lakh crore through futures and options (F&O) trading over a four-year period. Alarmingly, the net losses of individual traders widened to ₹1.05 lakh crore in FY25 alone, flagging the growing financial risk borne by retail participants in the derivatives segment.