NEW DELHI, July 4 -- On Thursday, India's stock market regulator SEBI banned Jane Street, a US-based investment giant, from trading in Indian markets. SEBI's allegation against Jane Street is that it indulged in manipulative practices via derivative trading to make giant profits. These profits are likely to have come at the cost of retail investors. SEBI has also seized $567 million of Jane Street's funds.

"JS Group was undertaking an intentional, well planned, and sinister scheme and artifice to manipulate cash & futures markets and hence manipulate the BANKNIFTY [Indian bank stocks] index level, to entice small investors to trade at unfavourable and misleading prices, and to the advantage of the JS Group," Financial Times said quoting ...