Income Tax Dept conducts raids at Jane Street, Nuvama office premises in Mumbai

The Income Tax Department has launched surveys at the Mumbai offices of US-based proprietary trading firm Jane Street and domestic brokerage Nuvama, according to people in the know. The action is reportedly tied to an ongoing investigation into alleged index manipulation by Jane Street and comes on the back of "specific inputs" related to the matter.

The tax surveys, which began on July 31, are underway at both locations and involve scrutiny of trading records, communications, and fund flows. 

This development comes just ten days after market regulator SEBI lifted its trading curbs on Jane Street, allowing the firm to resume operations in India. Jane Street had deposited Rs 4,843.57 crore in an escrow account, as mandated by SEBI’s interim order, to secure its dues pending final adjudication.

What’s the SEBI-Jane Street case?

SEBI had, on July 3, barred Jane Street and its associated entities from accessing the Indian securities market. The regulator alleged that the firm made illegitimate profits of Rs 36,671 crore between January 2023 and May 2025 by taking simultaneous positions in the cash and F&O segments, a strategy SEBI deemed manipulative.

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Jane Street has denied the allegations and said it intends to cooperate with SEBI and present its side.

The firm, founded in 2000, is headquartered in New York and has over 2,600 employees across 45 countries. It is one of the world’s largest market-making firms.

Why is the IT dept involved?

While SEBI is the primary market watchdog, the tax department’s surveys are likely meant to trace fund trails, tax compliance, and possible irregularities linked to the alleged manipulation case.

More clarity is expected once the department issues an official statement.