MUMBAI: Stating that it has “only engaged in basic arbitrage,” the now-banned US high-frequency trading giant Jane Street has told is preparing its official response to the Sebi charges and the resultant bank and that “arbitrage trades are a core and common mechanism of financial markets.

Jane Street said it was “beyond disappointed” by what it called “extremely inflammatory” accusations from the Securities and Exchange Board of India (SEBI) and is working on a formal response, according to an internal email sent to employees over the weekend that was seen by Reuters.

Jane Street plans to contest a finding by India's financial regulator that the U.S. trading firm engaged to manipulate the country's markets, the Financial Times reported on Monday.