India's market regulator said it had barred U.S. trading company Jane Street from accessing the local securities market, after an investigation into its alleged market manipulation through positions taken in equities derivatives.
The Securities and Exchange Board of India (SEBI) posted an interim order on its website dated July 3 outlining that Jane Street would no longer be able to participate in the domestic securities market.
"Entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly," the SEBI notice said, referring to Jane Street entities.
SEBI also said it would 'impound' 48.4 billion rupees ($566.71 million) from Jane Street which it said were 'unlawful gains earned' from the alleged misconduct.
"Jane Street disputes the findings of the SEBI interim order and will further engage with the regulator. Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world," the firm said in an emailed comment.
News of SEBI's actions comes as half a dozen global trading firms, from Citadel Securities and IMC Trading to Millennium and Optiver, are ratcheting up their presence in India's booming derivatives markets.
SEBI said Jane Street's activity on existing positions would be monitored until the regulator's investigation is finalised.
