The Income Tax Department on Thursday launched a survey operation at the Mumbai premises of Nuvama Wealth and Investment Limited, formerly known as Edelweiss Broking, and Jane Street, according to a CNBC TV18 report that cited sources.
The move is part of a broader investigation into potential financial irregularities involving the firm.
“The Income Tax Department is conducting a survey today, under Section 133A of the Income Tax Act, 1961, at the Company’s Registered office. The Company is extending full co-operation with the authorities and sharing requisite information…The survey is yet to be concluded,” Nuvama confirmed in a listing.
This development comes days after Jane Street was permitted to re-enter Indian markets. On July 21, a report by The Economic Times had stated that the firm had complied with the Securities and Exchange Board of India’s (SEBI) directive. It had maintained that Jane Street had agreed to deposit “unlawful gains” worth Rs 4,844 crore into an escrow account ahead of the July 14 deadline.
What’s the Jane Street case?
This case is one of the biggest enforcement actions in the Indian capital markets in recent years.
Earlier on July 3, SEBI had barred Jane Street from trading, accusing the firm of market manipulation that disrupted the derivatives segment. In an order published on its website, SEBI had said that Jane Street Group and its related companies are not allowed to buy, sell, or deal in any securities, either directly or through others.
However, the company had disputed the findings of the interim order, adding that they would further engage with the regulator.
SEBI had, later on July 22, allowed the trading firm to re-enter the Indian equity markets after completing the directive given by it. Jane Street had to establish an escrow account and deposit the alleged “unlawful gains” of Rs 4,844 crore before July 14.
On July 29, according to a report by Moneycontrol which cited a statement by Jane Street, the trading firm sought more time from SEBI to respond to the interim order issued on July 3.