New Delhi, July 21 -- Jane Street will be allowed to resume trading on the National Stock Exchange and BSE from Tuesday, nearly three weeks after the US hedge fund was barred from operating in India due to alleged market manipulation.

The development follows an update from the Securities and Exchange Board of India late Monday clarifying that Jane Street could resume trading in the country's stock exchanges subject to stipulations laid out in its 3 July interim order, said two people aware of the matter.

Jane Street entities will also be allowed to trade on the highly popular index options segment on both the exchanges provided they abide by Sebi's conditions.

"Jane Street will be allowed to trade on NSE effective Tuesday, per Sebi's d...