Jane Street Fallout Hits Top India Bourse’s Pre-IPO Valuation

A temporary trading ban imposed by India’s securities regulator on Jane Street Group LLC is fueling concerns that volumes in the nation’s bustling derivatives market may drop, hurting business at the top exchange.

Shares of National Stock Exchange of India Ltd., which commands over 90% of the equity derivatives space, have fallen almost 10% from their recent highs in the private market. They are changing hands at about 2,100 rupees to 2,150 rupees apiece, according to Umesh Chandra Paliwal, co-founder of trading platform UnlistedZone.

The drop follows a stunning surge in NSE’s unlisted shares since late October, fueled by ...