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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
