Jane Street Under Tax Lens in India Amid Allegations of Non-Cooperation
- Jane Street is accused of limiting access to financial records and servers located outside India, violating Indian company law.
- Income Tax officials conducted a survey at Nuvama Wealth, Jane Street’s Indian partner, amid a broader probe linked to Sebi’s earlier market manipulation charges.
- Jane Street deposited Rs 4,843.57 crore as part of a Sebi settlement after being accused of illicitly earning Rs 36,671 crore; the trading ban was lifted but the firm hasn’t resumed operations in India.
US-based trading giant Jane Street is facing scrutiny from Indian income tax authorities for allegedly obstructing an ongoing investigation related to market manipulation. Citing a senior government official, Reuters reported that the firm is limiting access to crucial financial documents and technological infrastructure, including servers and books of accounts many of which are reportedly maintained outside India.
The Income Tax Department claims that Jane Street’s Indian operations are minimal, with only a skeletal staff that is reportedly not cooperating with authorities. A senior tax official said the company’s refusal to provide access to offshore servers and financial records violates Indian company law, which mandates that books of accounts be maintained domestically.
The investigation intensified when the Income Tax Department conducted a survey at the registered office of Nuvama Wealth Management, Jane Street’s Indian trading partner. This action follows regulatory proceedings initiated by the Securities and Exchange Board of India (Sebi) in early July.
In a filing to the Bombay Stock Exchange (BSE), Nuvama confirmed the survey was conducted under Section 133A of the Income Tax Act, 1961. The firm stated that it is cooperating fully with authorities and providing all necessary information. It also clarified that the survey has not impacted its operations.
This tax probe is directly linked to Sebi’s earlier charges against Jane Street, in which the regulator accused the firm of manipulating market indices. According to Sebi, between January 2023 and May 2025, Jane Street allegedly placed trades simultaneously in the cash, futures, and options segments, earning illicit gains amounting to Rs 36,671 crore ($4.23 billion).
On July 4, Sebi barred Jane Street from participating in Indian markets. However, as part of a settlement, the firm deposited Rs 4,843.57 crore (approximately $567 million) in an escrow account an amount the regulator claims represents unlawful profits. Jane Street has reserved the right to challenge these allegations legally.
Sebi lifted the trading ban on July 21, following the escrow deposit, but Jane Street has not resumed its trading operations in India as of now.
Founded in 2000, Jane Street Group LLC is a global proprietary trading firm headquartered in the US, with operations spanning over 45 countries and a workforce exceeding 2,600 employees.
