Jane Street is accused by SEBI of market manipulation, facing a trading ban and a demand for USD 550 million in profits. The firm plans to contest the claims.

In an internal memo to its 3,000 employees, Jane Street’s senior management expressed being “beyond disappointed” by SEBI’s accusations and said it was “working on a formal response.”

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.