Jane Street Fraud Case: The US-based trading firm Jane Street gets a respite from the Indian market regulator following its ban from the Indian securities market over alleged manipulation in the derivatives market and fraud. The trading firm was allowed to resume its activities in the market after it deposited Rs 4,844 crore in an escrow account to comply with SEBI’s order.
But the respite that comes for Jane Street comes with some conditions and terms. SEBI has told the exchanges, BSE and NSE, to keep a strict surveillance on Jane Street Group’s future dealings and positions to ensure that they won’t indulge in any kind of manipulative activity till the completion of its investigation.
“Exchanges have confirmed that they will comply with this,” Sebi said in a statement on Monday.
SEBI also directed Jane Street group to not make any debits in respect of assets without the prior approval of SEBI. Moreover, the market regulator directed the banks where Jane Street affiliates are holding bank accounts to ensure no debits were made without permission of SEBI, according to ET report.
Jane Street, as per Et report, said in the undertaking that it will not enter into options trading. Moreover, the group won’t trade in the cash segment until it has explained its trading strategies to SEBI.
Earlier this month, the markets regulator in an interim order had barred the Jane Street Group from participating in Indian securities markets. Sebi had banned the Jane Street entities from trading or accessing Indian markets, frozen an amount of Rs 4,843 crore, and given the group 21 days to respond or request a hearing.
