New York-based hedge fund Jane Street has been granted permission by SEBI to resume trading in India, but with strict limitations. According to a Reuters report citing unnamed sources, the firm will not be allowed to trade in options, and it has voluntarily decided not to trade in cash until it provides further explanations to the market regulator.

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Interim Order Restrictions Lifted Background: Market Manipulation Allegations Exchanges Yet to Facilitate Trading

“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,” a source told Reuters.

Additionally, Jane Street has informed SEBI it will abstain from cash market trades until the matter is clarified.

Interim Order Restrictions Lifted

SEBI had earlier issued an interim order suspending Jane Street’s market access, citing manipulation in the Indian market. However, the regulator recently sent an email to the firm on July 18, stating that the restrictions are no longer applicable following the deposit of impounded funds.

Despite the permission to trade again, the return is expected to be subdued, given the limitations on trading options and voluntary pause in the cash segment.

Background: Market Manipulation Allegations

Jane Street was accused of manipulating Indian indices through simultaneous bets in the cash, futures, and options markets between January 2023 and May 2025. SEBI alleged that the firm’s coordinated trades led to unfair profits, prompting a crackdown.

Total net gains reported during the probe period stood at ₹36,671 crore.
SEBI impounded over ₹4,843 crore, and suspended Jane Street’s market access earlier this month.

Exchanges Yet to Facilitate Trading

Though SEBI has lifted the restrictions, sources noted that the two Indian exchanges have not yet facilitated the firm’s buying and selling of securities. The process could take additional time as regulatory procedures are followed.

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ByJitesh Kanwariya

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I am Jitesh Kanwariya is a professional stock market analyst and F&O trader with expertise in derivatives and market research. A Python developer by profession, he leverages data-driven insights to analyse market trends and simplify trading for investors.