Jane Street Deposits Rs 4,843 Crore In Escrow Account, Confirms Sebi

US-based trading major Jane Street has deposited Rs 4,843.57 crore in an escrow account, as directed by the Securities and Exchange Board of India (Sebi). This comes after Sebi accused the group of manipulating the market and ordered the impounding of nearly the same amount.

In its interim order in July, Sebi had directed the group to deposit the entire amount into an escrow account with a lien marked in Sebi’s favour. According to the order, this amount represents the total gains allegedly made by Jane Street through manipulative trading practices.

Key Actions Taken Against Jane Street

As part of the interim action, Sebi had barred Jane Street and its related entities from accessing the Indian securities market, and prohibited them from buying, selling, or dealing in securities.

Further, banks were directed to freeze all debit transactions from the group's accounts.

Similarly, custodians and depositories were asked to block all asset debits, including demat account movements, and ensure no redemption or transfer of securities is carried out. Registrar and Transfer Agents (RTAs) were also directed to ensure that no transactions are processed for the entities involved.

Further, stock exchanges were directed to monitor the group’s future activity to ensure the group is not involved in such behavior until Sebi completes its ongoing investigation. Sebi had also directed Jane Street to not use any of the trading strategies it flagged in the interim order.

Jane Street Confirms Deposit, Asks Sebi to Lift Restrictions

Sebi, in an update on July 14, confirmed that Jane Street has deposited Rs 4,843.57 crore into an escrow account. According to the update, the group said that this action is taken without prejudice to its legal rights and remedies.  

The group has further requested Sebi to lift certain conditional restrictions imposed under the interim order.

“Jane Street has further requested Sebi that following the creation of this escrow account in compliance with Sebi directions, certain conditional restrictions imposed under the interim order be lifted and that Sebi issue appropriate directions in this regard,” the regulator said.

Sebi has said it is reviewing this request in line with the directions of its interim order.