Jane Street’s Lack of Cooperation with Authorities Hinders I-T Probe, According to Report

Global trading firm Jane Street is reportedly not cooperating with the Income Tax Department in India as it investigates allegations of tax evasion and market manipulation. Sources indicate that the investigation is facing hurdles due to the company’s servers being located outside India, which limits access for Indian officials. This situation has raised concerns about the firm’s compliance with local regulations, especially following a recent interim order from the Securities and Exchange Board of India (SEBI) regarding alleged index manipulation.
Investigation Challenges
The Income Tax Department’s investigation into Jane Street has encountered significant obstacles. According to sources, the company’s essential servers are situated outside of India, making it difficult for officials to access necessary data. One source noted that access to these servers is being blocked, complicating the investigation further. Additionally, Jane Street’s financial records are maintained overseas, which contradicts Indian company law that mandates local record-keeping. This lack of local presence has made it challenging for investigators to gather information and verify the company’s financial activities.
Moreover, Jane Street reportedly has a minimal workforce in India, and these employees are not assisting the authorities in their inquiries. This lack of collaboration has hindered the progress of the investigation, raising questions about the company’s willingness to comply with Indian regulations. The situation is further complicated by the recent actions taken by SEBI, which has already imposed restrictions on the firm due to allegations of market manipulation.
SEBI’s Interim Order
On July 4, SEBI issued an interim order against Jane Street, seeking to recover approximately Rs 4,843.57 crore in illegal gains linked to index manipulation. The order specifically targets four entities within the Jane Street Group: JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd. SEBI’s findings indicated that the group had engaged in a profit maximization scheme that manipulated the market, resulting in substantial profits from index options while incurring minor losses in cash and futures segments.
The interim order also mandated that these entities cease all fraudulent or manipulative trading practices that could violate existing regulations. In response, the entities have acknowledged their compliance with SEBI’s directives. This order follows a broader investigation into Jane Street’s trading practices, which has raised serious concerns about the integrity of their operations in the Indian market.
Recent Developments
The Income Tax Department’s investigation gained momentum following SEBI’s actions against Jane Street. Just a day before the reports of Jane Street’s non-cooperation surfaced, the Income Tax Department conducted a survey operation at various broking companies as part of its probe into alleged tax evasion linked to the firm. Sources indicated that this verification exercise is closely tied to SEBI’s findings regarding Jane Street’s market manipulation.
SEBI’s interim order revealed that Jane Street had made significant profits during the investigation period, amounting to Rs 36,671 crore on a net basis from January 2023 to May 2025. However, following the issuance of the order, SEBI allowed Jane Street to resume trading on July 21, 2023, after the firm deposited the mandated amount of Rs 4,843.57 crore into an escrow account. This development highlights the ongoing complexities surrounding Jane Street’s operations in India and the regulatory scrutiny it faces.
Future Implications
The ongoing investigation into Jane Street raises important questions about the regulatory environment for foreign trading firms operating in India. As the Income Tax Department and SEBI continue their inquiries, the lack of cooperation from Jane Street could lead to further complications. The situation underscores the challenges faced by Indian authorities in enforcing compliance among foreign entities, particularly when critical financial data is stored outside the country.
The outcome of this investigation could have significant implications for Jane Street’s operations in India and may influence how foreign trading firms approach compliance with local regulations in the future. As the situation develops, stakeholders will be closely monitoring the actions taken by both the Income Tax Department and SEBI in response to these allegations.
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