SEBI has temporarily barred Jane Street from the Indian stock market and impounded ₹4,840 crore for alleged index manipulation, raising concerns about retail traders' vulnerabilities in derivatives trading.

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.

Following its ₹4,843 crore order against Jane Street Group for alleged index manipulation, Sebi Chairman Tuhin Kanta Pandey issued a stern warning that market misconduct — from domestic or foreign entities — will face zero tolerance.