(Reuters) -New York-based trading firm Jane Street Group is likely to argue that its controversial Indian options trades were a response to outsized demand from retail investors, Bloomberg News reported on Monday, citing people familiar with the matter.

In an interim order on July 3, the Securities and Exchange Board of India barred the company from trading securities in the Indian market, citing that some of its trading strategies were manipulative and led to losses for retail investors.

The Indian market regulator alleged that Jane Street and its related entities manipulated the Bank Nifty index by purchasing large quantities of constituent stocks in the cash and futures markets to artificially support the index in morning trade, while simultaneously building short positions in index o

See Full Page