Our Bureau
Mumbai
The market regulator has confirmed that Jane Street has deposited the mandated Rs 4843.50 crore. They have transferred the account in an escrow account in favour of Securities and Exchange Board of India (SEBI).
The deposition happened because a few days ago on July 3rd, the market regulator had issued an interim order against the United States based Firm for manipulating the Bank Nifty Index. The order from the market regulator barred Jane Street from trading in the Indian market until they deposited the amount of Rs 4843.50 crore in an escrow account in favor of SEBI.
The Wall Street firm after submitting the amount stated that they have taken this action without any prejudice to its rights and remedies which remain available to them in law and equity. The firm has requested SEBI that once the escrow account is created according to their directions, they should lift certain restrictions that they have imposed through their interim orders.
The whole fiasco began when SEBI had accused the US based firm of deliberately manipulating the Bank Nifty index through a series of trades. They stated that the trades lacked “plausible economic rationale.” SEBI referred to it as a case of “intra-day index manipulation,” and stated that the Wall Street firm had aggressive and unhedged positions in Nifty Bank options and other instruments. They stated that these positions were built up rapidly and unwound on the expiry day.
