Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Jane Street has deposited more than $560mn of what India’s markets regulator has called “illegal gains” in an escrow account to comply with an order that banned the company from trading securities over alleged market manipulation.
The Securities and Exchange Board of India said on Monday that Jane Street had informed the regulator that Rs48.4bn ($564mn) “has been credited to an escrow account with a lien marked in favour of Sebi”.
The deposit is a precursor to lifting a trading ban imposed by Sebi on the New York-based firm this month over what the regulator called a “sinister scheme” to manipulate stocks and derivatives in the country.
The order threatened Jane Street’s lucrative trading business in India, where it has netted more than $4bn in profits over the past two years.
Sebi said the trading firm had asked the regulator to lift the ban and that the request was under consideration.
Jane Street said the deposit was “undertaken by them without prejudice to their rights and remedies which remain available to them in law and equity”, according to Sebi.
The company plans to “strenuously contest” Sebi’s findings, said a person familiar with the matter.
This is a developing story.
In recent news, Jane Street, a prominent trading firm, has made a significant deposit of over $560 million in compliance with an order from India’s markets regulator. This deposit comes in response to allegations of market manipulation that led to a ban on the company’s trading activities. The Securities and Exchange Board of India revealed that Jane Street has placed the funds in an escrow account, signaling its commitment to adhere to regulatory requirements.
The regulator’s decision to ban Jane Street was based on accusations of engaging in a “sinister scheme” to manipulate securities and derivatives in India. This move posed a threat to the firm’s substantial profits in the country, totaling more than $4 billion in the past two years. In response, Jane Street has taken proactive steps to address the situation and work towards resolving the ban.
While Jane Street has deposited the funds as requested, the company has clarified that this action does not imply any admission of guilt. Jane Street remains firm in its stance to challenge the regulator’s findings and defend its rights through legal means. The request to lift the ban is currently under review by Sebi, with further developments expected in the near future.
As this story continues to unfold, stakeholders in the financial market are closely monitoring the situation for updates and potential implications. The outcome of this case could have far-reaching consequences for Jane Street and the broader trading industry in India. Stay tuned for more updates as the regulatory process progresses.
