New Delhi, July 7 -- The stock market has been forced to sit up by an interim order passed by the Securities and Exchange Board of India (Sebi) against New York-based securities firm Jane Street. The order has fired the imagination of sundry arbitrageurs and mollified traders who were alarmed by rising levels of risk in India's capital markets. Sebi has been alerting the public about rising risk in the equity futures and options (F&O) segment and taking prudential steps.

Last week, after a long probe, it barred Jane Street's four trading arms from transacting in the Indian securities markets till it completes its 'detailed' investigation. The capital market regulator has also sought to disgorge Rs.4,844 crore from the securities firm. Se...