New Delhi, July 4 -- The Securities and Exchange Board of India (SEBI) has recently cracked down on Jane Street, a US based trading giant. The crackdown is to do with alleged manipulation of Indian financial markets and profiting unfairly. The total profit garnered as per the SEBI report is of Rs.36,502 crore.

SEBI's interim order against Jane Street clearly reveals how expiry day trades can be engineered to distort and create complexities in index movements. This case highlights the very serious hidden risks retail investors face in the rapidly evolving, fast moving algorithm driven equity markets.

Source: Sebi order link: (Page 10 of the SEBI order)

The SEBI order charges Jan Street Group with the manipulation of equity indices. This...