SEBI has barred US-based Jane Street Group from participating in the Indian stock market and ordered it to disgorge unlawful gains of ₹4,843 crore for allegedly manipulating stock indices through derivative positions.

The Sebi interim order against Jane Street exposes the frailties of the Indian derivatives market – flawed product structures and lopsided composition loaded against the small, individual traders. The regulator might have its task cut out in completing the investigation and standing the judicial scrutiny.

India's markets regulator has widened an investigation into alleged market manipulation by U.S. securities trading firm Jane Street to include other indexes and exchanges, a source familiar with the matter said.