BSE Share Price Jumps Over 3% After SEBI Clears Jane Street’s Return to Indian Market Post Rs 4,844 Cr Escrow

Shares of BSE Ltd climbed above 3% on Monday, reaching Rs 2,519 on the National Stock Exchange (NSE). Market spectators attribute the sharp rise to news that U.S.-based trading giant Jane Street has regained access to Indian stock markets. The Securities and Exchange Board of India (SEBI) confirmed that Jane Street satisfied its directive to deposit approximately Rs 4,844 crore in escrow before the July 14 deadline, effectively lifting restrictions tied to earlier regulatory action.

SEBI Clears Jane Street to Re-Enter Indian Stock Market

According to a report by Business Standard, Jane Street received formal communication from SEBI acknowledging that the block on its access to Indian securities markets has been removed. This follows the regulator's July 3 interim order stating that once the escrow deposit was confirmed, the trading restrictions would be withdrawn.

BSE Share Price Today on Jane Street's Returning

As of 1:24 PM on July 21, shares of BSE Ltd were trading at Rs 2,529.00, marking a sharp increase of Rs 80.50 or 3.29% for the day. The stock opened the day at Rs 2,450.00 and touched an intraday high of Rs 2,535.00, while the low for the session stood at Rs 2,433.10.

BSE Ltd has demonstrated significant volatility in the past year, with its 52-week high pegged at Rs 3,030.00 and the 52-week low at Rs 705.00, indicating substantial appreciation over the longer term.

Stock Market Fallout: NSE Options Volumes Crashed Without Jane Street

The absence of Jane Street's trading activity had an immediate impact on market turnover. On July 17, for instance, index option turnover on the NSE plummeted to Rs 39,625.77 crore, representing a 35% decline from June average volumes. Daily volumes throughout July remained subdued, highlighting Jane Street's influence on market liquidity and activity.

Why did SEBI Ban Jane Street?

Jane Street had been shut out of India's markets earlier this year after allegations emerged that it manipulated certain index-based derivative contracts, particularly on expiry days. SEBI identified the firm for deploying a controversial strategy involving large bullish options positions coupled with bearish futures bets-earning windfall profits by moving index levels and then reversing trades.

In its investigation, SEBI found that Jane Street had accumulated Rs 36,502.12 crore in profits between January 2023 and March 2025. These gains included around Rs 43,289 crore in index options, offset by losses of nearly Rs 7,687 crore in cash and futures trading. From those profits, SEBI froze a total of Rs 4,840 crore, deeming them "unlawful."

Key Allegation: One-Day Rs 735 Crore Windfall on January 17, 2024

A standout example cited by SEBI involves January 17, 2024, when Jane Street reportedly turned a sudden profit of Rs 734.93 crore in a single trading day. The firm is alleged to have executed a "pump-and-dump" maneuver by aggressively buying Bank Nifty futures and stocks worth Rs 4,370 crore, while simultaneously holding bearish positions in index options. Market prices swung in its favor, enabling the firm to earn a large day-end profit.

SEBI also found that, out of 18 expiry-day sessions analyzed between January 2023 and March 2025, 15 showed signs of manipulation. Evidence suggests that Jane Street placed large orders across at least 40 large-cap stocks, including staples like Reliance Industries and Infosys, to artificially influence index performance-and mislead retail investors during high-volatility expiry periods.

Despite formal warnings sent by SEBI in February 2025-via communications routed through the NSE-Jane Street reportedly persisted with its trading tactics. While the NSE concluded its internal inquiry in consultation with its Indian partner Nuvama, SEBI maintained its own investigation citing concerns around market integrity and investor protection.

Next Steps: Ban Lifted Following Escrow Deposit Request

Jane Street formally petitioned SEBI to reinstate its access following the escrow deposit. SEBI reviewed the petition in line with the conditions laid out in its July 3 interim order, and confirmed that all requirements for resuming trading had been satisfactorily met.