Jane Street has told staff it will contest a ban by India's financial regulator which has accused the U.S. high-frequency trading giant of market manipulation, adding that its practices in question were "basic index arbitrage trading".

India’s market regulator SEBI has barred US-based Jane Street from trading in local securities, alleging manipulative trades that earned it ₹4,843 crore ($570 million) in unlawful gains

At the heart of the controversy is Jane Street’s aggressive trading in the derivatives (futures) segment, where the firm executed trades designed not just to profit, but to sway the market itself. Here's how.