(Reuters) -India’s market regulator said on Monday it has lifted trading restrictions on Jane Street after the U.S. high-frequency trading firm deposited $567 million.
The Securities and Exchange Board of India had in an interim order on July 3 barred the firm from trading securities in the Indian market, saying some of its trading strategies were manipulative and led to losses for retail investors.
The regulator froze $567 million of its funds, with a condition that Jane Street could resume trading if an equivalent amount was deposited in an account that gives the regulator rights over the money until its investigation is complete.
SEBI said on Monday it has directed the National Stock Exchange of India and the Bombay Stock Exchange to closely monitor the activity of the U.S.-based quant trading firm.
The regulator had sent an email to the firm on Friday informing them about lifting the restrictions, Reuters reported earlier in the day, citing two sources who declined to be named as they were not authorised to speak to the media.
The two stock exchanges are yet to facilitate Jane Street’s buying and selling of Indian securities, one of the sources said.
“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 sources told Reuters.
(Reporting by Jayshree P Upadhyay in Mumbai and Nishit Navin; Editing by Jacqueline Wong, Shri Navaratnam and Arun Koyyur)
