Jane Street complies with Sebi, deposits Rs 4,840 crore in escrow account

Jane Street Group LLC has deposited Rs 4,840 crore ($564 million) in an escrow account to comply with an order from India’s securities market regulator, according to people familiar with the matter.

The US trading giant deposited the sum as per the directives of the Securities and Exchange Board of India’s July 3 order, the people said, asking not to be named as the information is private. Jane Street does not immediately intend to resume trading in India’s options market, one of the people said.

SEBI didn’t immediately respond to an email sent outside business hours. Regional executives at Jane Street didn’t reply to emails seeking comment. Moneycontrol had reported the deposit of the sum earlier Monday, citing people it didn’t name.

SEBI, in its order, had temporarily banned the trading giant from accessing the local market over allegations of index manipulation, requiring it to deposit what it termed as “illegal gains” in an escrow account with a local bank. Jane Street has denied the allegations.

Jane Street told staff on July 6 that it strongly rejected the premise and substance of SEBI’s interim order, and that it was preparing a formal response to the regulator and assessing legal options.