Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (Sebi), issued a strong warning on Saturday against market manipulation, asserting that such practices—like those allegedly committed by US-based Jane Street—will not be tolerated.

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.

Jane Street entities manipulated index levels on expiry days to gain a significant edge in the index options segment