According to government sources, Jane Street, a major US-based trading firm, is not cooperating with the ongoing investigation by India’s Income Tax Department.
The authorities say that Jane Street’s servers are located outside India, and access to them is being blocked. This has made it difficult for Indian officials to examine key data.
In addition, Jane Street has reportedly maintained its books of accounts outside the country. This goes against Indian company laws, which require such records to be stored within India.
The firm is also said to have only a small number of staff present in India, and they too are allegedly not cooperating with the tax authorities.
SEBI’s Ban Hits Market Turnover
The Securities and Exchange Board of India (SEBI) recently banned Jane Street from trading in India. This move had a major impact on the market, especially in options trading.
On the National Stock Exchange (NSE), weekly expiry options turnover dropped sharply—from Rs 80,731 crore on June 26 to Rs 45,884 crore on July 10. In July, the first eight days saw a 30% drop in options turnover compared to April, falling from Rs 15.22 lakh crore to Rs 10.4 lakh crore.
Escrow Deposit and Allegations
Following the ban, Jane Street deposited Rs 4,843.5 crore in an escrow account. SEBI claims the firm made illegal profits of around Rs 43,289 crore between 2023 and 2025.
The firm is accused of using a manipulative trading tactic known as “marking the close” in Nifty Bank options, which involves placing trades near market close to influence prices.
The investigation is ongoing, and Indian authorities continue to seek cooperation from the firm to access necessary records and data.
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