While the order passed by market regulator Securities and Exchange Board of India directed impounding of Rs 4,843.57 crore in alleged unlawful gains from Jane Street Group, it is the group's margin deposits in government securities that would ensure compliance, as per the people in the know.
The group entities currently have Rs. 15,000 crore as margin deposits in G-Secs. The regulator will have the avenue of recovering the illegal gains from this amount if the accused try to escape paying the illegal gains, the people quoted above said.
According to SEBI's order, Jane Street earned Rs 43,289.33 crore in profits through trading in index options on Indian exchanges between Jan. 1, 2023, and March 31, 2025.
The market regulator passed the order as part of enforcement action. It applies to all Jane Street Group entities operating in India and restricts their ability to trade or participate in any market-related activity.
"Entities are restrained from accessing the securities market and are further prohibited from buying, selling, or otherwise dealing in securities, direct or indirect," SEBI said in an order.
The regulator has asked Jane Street entities to jointly and severally deposit the amount into an escrow account with a scheduled commercial bank in India. The escrow account must carry a lien marked in favour of SEBI, and the funds cannot be released without the regulator's approval. The prohibition is immediate and remains in effect until further directions from SEBI.
In addition, SEBI has directed banks to restrict all debit transactions in the accounts held by Jane Street entities, whether individually or jointly, unless for the purpose of complying with this order. Banks may allow credit transactions and debit amounts only if they exceed the sum to be impounded.
Jane Street disputes the findings of SEBI's interim order and will further engage with the regulator, the company's spokesperson said in an emailed response to NDTV Profit.
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