Securities and exchange boardSebi) Alleged Jane StreetOne of the largest trading firms of Wall Street, to run it to run the country markets to run “a intentional, well -employed and frightening plan”. The Financial Times on Monday reported the conclusions of the regulator. Reuters have not verified it independently.

On Friday, SEBI stopped Jane Street from trading in India and ordered to return it to more than $ 550 million, describing it as an illegal advantage. The ban follows the allegations that Jane Street transferred the shares of the Indian bank to the ways that triggered the big payment on the connected derivatives.

SEBI is increasing its surveillance to check the manipulation in derivative trading, its chairman said on Monday.

SEBI has alleged that Jane Street bought a large amount of components in cash and futures markets to artificially support the index in the morning trade, as well as built large posts in index options.

Jane Street rejected the allegations

Jane Street has told the employees that it will fight the ban. In a memorandum sent to around 3,000 employees on Sunday, senior management wrote that they were “disappointed” from Sebi’s “highly inflammatory” allegations.

Memo, quoting the Financial Times, said, “It is deeply upset to see the firm in this way wrongly.” “It is painful to tarnish our firm’s reputation by a report based on the role we serve in markets we serve in markets around the world.

Jane Street vs Sebi

Jane Street’s troubles with SEBI last year joined the Millennium Management and a case filed against two former traders, who left for a hedge funds. In that case, Jane Street claimed that traders stole a valuable strategy that turned into the center on Indian options. In SEBI investigation, Jane Street’s trades were linked to the Banknifty Index, which tracks India’s major banking stock. Jane Street has argued that the flags by SEBI were nothing more than the “Basic Arbitrage Trading”, which was a common practice in business.

Pushback on exchange claims

SEBI’s order also states that Jane Street ignored the warning from local stock exchanges. The firm strongly disputes this point. In a single memorandum for employees, Jane Street said that the regulator “used a metric for market influence and business aggression, which has disconnected from real market dynamics”.

Memo said that when exchanges raised concerns for the first time, the firm “immediately shut down its business until we could better understand the concerns of the exchanges” and later changed our approach to fulfill their “preferences”.

Memo said, “Once again, we realized the process that we have reached an understanding of concerns and have reflected them in amendments in our business behavior.” “Since February, we have made ongoing efforts to communicate with SEBI and have been continuously reprimanded.”

Jane Street has 21 days to object to SEBI’s order and ask for hearing. The firm states that it is working on a wide response and planning to fight a complete ban.

Meanwhile, India’s regulators say they can widen the investigation of other trades and equipment associated with the firm. In one of the largest markets in Asia, the future of Jane Street is now hanging on how this fight plays.