Mumbai (Maharashtra) [India], July 21 : The Securities and Exchange Board of India (SEBI) has allowed U.S. proprietary trading firm Jane Street to resume trading in the Indian stock markets following the US firm deposited USD 567 million, according to a source based report by news agency Reuters.
There has not been any official update regarding the same by the Indian market regulator. Quoting sources Reuters added in its report that the market regulator has sent an email to the firm on Friday in which it said that following the deposit of the money the restrictions imposed by its interim order are no longer applicable.
Additionally, the National Stock Exchange of India Ltd and The Bombay Stock Exchange Ltd. have been asked to closely look at the activity of the U.S.-based quant trading firm. Both exchanges are yet to facilitate Jane Street's buying and selling of Indian securities, said one of the Reuters sources.
"While the firm has been allowed to resume trading in India, it has given an undertaking to SEBI that it will not trade in options. The firm also does not intend to trade in cash till it has explained its trades to SEBI," the second source said.
In the background, Jane Street Capital deposited approximately Rs 4843.50 crore in an escrow account and requested market regulator, the Securities and Exchange Board of India (SEBI) to allow them to resume trading in the Indian stock markets.
Last week, SEBI stated through a press release that Jane Street has deposited the alleged illegal gains of Rs 4843.50 crores and requested the regulator to allow them trade in the Indian markets.
"They (Jane Street) have further stated that this action has been undertaken by them without prejudice to their rights and remedies which remain available to them in law and equity," the market regulators said in the release.
SEBI in its last press release on July 14th said that the request by Jane Street is currently under examination in accordance with the directions of the interim order.
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