New Delhi, July 8 -- Jane Street has told its employees that it will challenge the ban by India's market regulator, the Securities and Exchange Board of India (Sebi), which has accused the US high-frequency trading firm of market manipulation.

The trading giant denied the accusations and claimed that the practices in question were "basic index arbitrage trading".

Jane Street said it was "beyond disappointed", calling the Sebi accusations "extremely inflammatory".

The firm is currently working on a formal response to the ban, according to an internal email to employees seen by Reuters.

This comes after Sebi's Friday order that barred Jane Street frombuying and selling securitiesin the Indian market. The securities watchdog also seized ...