Our Bureau
Mumbai
The Securities and Exchange Board of India (SEBI), regulator of capital markets of India, has finally given Jane Street a green light to restart trading in the Indian market. They were allowed to resume trading after they deposited ₹4840 crore ($567 million) into an escrow account last Monday on July 14th.
As per the reports, Sebi, this Friday, had sent an email to the firm based in the United States regarding the decision of resuming their right to trade in the Indian market. The mail stated that following the deposit of the money this Monday, the restrictions imposed by SEBI’s interim order are no longer applicable and they can continue trading in the Indian market.
After submitting the amount last week, the US-based trading firm had requested the market regulator to lift their restrictions that were imposed under their interim order. However, they didn’t receive any confirmation at that time and stated that their request was still under examination.
“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. This request is currently under examination by Sebi in accordance with the directions of the interim order,” the statement said.
The whole matter came into light when the Indian capital market regulator had accused Jane Street that they had intentionally manipulated the Bank Nifty index through a series of trades. SEBI informed that the trades lacked any “plausible economic rationale.” The regulators referred to it as “intra-day index manipulation,” and deduced that the Wall Street firm had aggressive and unhedged positions in Nifty Bank options and other instruments.
