Trading firm Jane Street has been granted regulatory approval to restart operations in India following a substantial ₹567 crore deposit with the country’s financial authorities. The approval clears the way for the firm to resume executing foreign exchange and interest-rate trades in the Indian market, after a prolonged suspension prompted by fresh compliance rules earlier this year .

The Reserve Bank of India had mandated that global hedge funds maintain a pre-funded balance if they wish to conduct derivatives trading locally. This requirement led Jane Street to halt spot and forward contracts for rupee trades in June, while regulators reviewed its funding plans . The firm’s recent deposit appears to satisfy RBI’s conditions, signaling a renewed commitment to activity in India’s currency markets.

Jane Street, known for its high-volume, algorithm-driven trading strategies in global asset classes, has grown more active in India in recent years. Its push into Indian markets coincides with rising volatility in global currencies and expanding institutional investor interest in non-deliverable rupee and bond futures .

Analysts suggest the firm’s re-entry could enhance liquidity and competitiveness in India’s financial ecosystem. The arrival of quantitative hedge funds like Jane Street is seen as a positive trend that may deepen market capacity, narrow bid-offer spreads, and improve efficiency for corporate and financial players seeking FX and interest derivatives hedging.

While major international banks continue to hold dominant share in rupee-denominated trading, Jane Street’s return adds diversity to the trading landscape. Market participants will be watching closely to assess how algorithmic trading influences volumes, price stability, and regulatory oversight in the coming months.

This development arrives amid a broader global shift, with India increasingly opening its capital markets to foreign participants while simultaneously enforcing stringent risk controls. Jane Street’s ability to meet the RBI’s capital pre-funding standard could pave the way for more hedge funds re-entering Indian jurisdictions.

As compliance requirements and institutional gatekeeping evolve, Jane Street’s renewed presence underscores the delicate balance between foreign capital inflows and regulatory prudence. For now, its continued engagement signals a growing confidence in India’s financial infrastructure—and sets a precedent for compliance-driven market re-engagement by global trading firms.