The income tax (I-T) department on Thursday conducted search operations at the Mumbai offices of US-based trading firm Jane Street and its local partner Nuvama Wealth Management.
Search Operations
The search operations were conducted to ascertain whether Nuvama’s custodial and broking services enabled or facilitated Jane Street’s alleged manipulative activities and potential diversion of funds, according to sources.
“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 cooperation with the authorities and sharing requisite information,” Nuvama informed in a filing.
In an interim order on July 3, Sebi accused Jane Street of manipulating indices through complex strategies simultaneously in cash, futures and options. It had made illicit profits of around Rs 36,671 crore between January 2023 and May 2025, according to the markets regulator.
A temporary ban on Jane Street led to a crash of nearly 20-30% in derivative volumes in the weeks following the order. The regulator lifted the ban on July 21 after the US firm deposited Rs 4,843.57 crore in an escrow account as per its order.
Jane Street
In an email on July 28, a Jane Street spokesperson had said it upholds the integrity of India’s capital markets. “We are engaging constructively with Sebi and have sought an extension to respond to the interim order issued on July 3,” he said.
Since early 2024, Sebi has taken several steps, including the issuance of a caution letter through the National Stock Exchange (NSE) to Jane Street to cease and desist from its trading patterns. “They did not act on these warnings,” a senior Sebi executive said.
Nuvama Wealth shares ended 2.53% down at `7,225 on the NSE on Thursday.