Jane Street has told staff it will contest a ban by India's financial regulator which has accused the U.S. high-frequency trading giant of market manipulation, adding that its practices in question were "basic index arbitrage trading".

Jane Street Fights Back as SEBI Alleges $564 Million Index Manipulation in India - SEBI barred Jane Street from Indian markets and ordered seizure of Rs 48.4 crore ($564 million)

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.