In a notable action, Jane Street Financial Pte. Ltd. is now restricted from accessing India’s securities market by the country’s market regulator, Securities and Exchange Board of India (SEBI). This global trading firm is now barred from accessing the country’s securities market due to not complying with ‘Know Your Customer’ (KYC) rules. As per the order issued on May 10 2024, Jane Street failed to meet compliance requirements with regard to their clients’ identification verification processes. Financial institutions must, for example, abide by KYC procedures to safeguard against financial crime and ascertain that proper due diligence is carried out when doing business. India's Market Watchdog Halts Trading for Global Firm Jane Street Over KYC RulesCurrently, Jane Street is barred from executing new trades and accessing new market offerings until compliance issues are rectified and SEBI approval is received. However, they are not mandated to exit positions; they continue to manage their current holdings.Jane Street is recognized worldwide as one of the leading quantitative trading firms and market makers, meaning they help facilitate trading by ensuring there is liquidity for buyers and sellers. They contribute to the global financial markets. This regulatory gap emphasizes the need for strict compliance across the board, especially for firms located in fast-evolving markets such as India. It serves as a pointer that compliance has to be observed in order to uphold the integrity and safety of the markets.
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