The renowned American trading firm, Jane Street, is under scrutiny for allegedly generating substantial profits in the Indian stock market through questionable means. This issue surfaced after the Securities and Exchange Board of India (SEBI), the Indian market regulator, initiated a thorough investigation into the company's derivative trading activities. SEBI's report indicates that the company earned approximately $4.23 billion from trading in India between January 2023 and May 2025. Concerns have been raised regarding whether these earnings were obtained within regulatory compliance or if any irregularities were involved.
Income Tax Department Initiates Investigation
The Income Tax Department has now become actively involved in the matter. The department has commenced inquiries into Jane Street's offices in India and the operations of its partner, Nuvama Wealth. As part of the investigation, the company was requested to provide certain crucial documents and data. However, reports suggest that Jane Street has, so far, not cooperated in this regard.
Essential Documents Not Available in India
According to government sources, the documents that Jane Street was required to furnish to the income tax authorities have either not been submitted or it has been stated that they are not located in India. The company's server is reportedly based outside the country, making its data inaccessible to Indian authorities. Furthermore, the company's account books are not maintained in India, despite the legal requirement for companies operating in India to keep records of their financial transactions within the country.
Evasive Attitude of Employees
Investigating officers report that not only are the documents unavailable, but the attitude of the company's local employees has also been uncooperative. Despite repeated summons for questioning, employees are either providing incorrect answers or evading the questions altogether. This is causing delays in the investigation and creating difficulties in gathering essential evidence.
SEBI Had Previously Imposed a Temporary Suspension
The entire issue began with action taken by SEBI, the Indian market regulatory body. In early July, SEBI had temporarily suspended Jane Street's trading activities in India. SEBI alleged that the company had disrupted the market through derivatives trading, which not only harmed other investors but also impacted market transparency.
Role of Nuvama Wealth Also Under Investigation
Jane Street was not operating independently in India. Nuvama Wealth was associated with it as a local partner. The Income Tax Department is now also investigating the role of this entity. According to officials, efforts are underway to determine the extent to which Nuvama had access to the company's foreign servers, documents, or financial records, and whether it played any suspicious role in Jane Street's operations in India.
Questions Raised Regarding Data Access
The biggest challenge facing the investigating authorities is that the company's servers and data are located outside India, and Indian laws do not directly apply to them. This is hindering the Income Tax Department's investigation process. Additionally, delays in data transfer by the company and repeated instances of evasion are making it difficult to complete the investigation in a timely manner.
Debate on the Accountability of Foreign Companies
This case has once again raised the question of how b the accountability of foreign companies operating in India is under Indian law. Jane Street's attitude has currently become a challenge for Indian institutions. Previously, several international companies have been accused of tax-related irregularities in India, but investigations have been prolonged due to lack of cooperation.
Indian Investors Monitoring the Case
This case is no longer limited to investigations by tax authorities or SEBI. Small and large investors active in the stock market are also closely monitoring the entire situation. There is unease in the market regarding the allegations against Jane Street and the slow pace of the investigation. Investors fear that this may affect other market activities.
