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‘Their (Jane Street) servers are located outside India and access is being blocked,’ according to a Moneycontrol report citing sources.
Sebi barred Jane Street from participating in Indian markets on July 4, accusing it of manipulating stock indices through derivatives trades.
Jane Street, a US-based hedge fund, is reportedly not cooperating with the ongoing investigation by the Income Tax Department, according to a Moneycontrol report citing sources.
“Their (Jane Street) servers are located outside India and access is being blocked. The books of accounts are also maintained outside the country, despite the requirement under Indian company law to maintain them in India. They have only a skeletal staff present here, who are also not cooperating,” the sources told Moneycontrol.
They further added, “It’s premature at this stage. Once the income tax department gets all transaction data, books of account, and their effective control and management strategy would be estimated.”
The development follows the income tax survey conducted on Thursday at the Mumbai premises of Jane Street’s local trading partner, Nuvama Wealth Management.
In a regulatory filing, Nuvama confirmed the tax survey under Section 133A of the Income Tax Act, 1961, stating, “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 co-operation with the authorities and sharing requisite information.”
It added that the survey was ongoing and that business operations remained unaffected: “The survey is yet to be concluded. The Company will make requisite disclosures, if any, to the stock exchanges under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Company continues to operate business as usual.”
It comes after the Securities and Exchange Board of India (SEBI) barred Jane Street from participating in Indian markets on July 4, accusing it of manipulating stock indices through derivatives trades.
In response to SEBI’s allegations, Jane Street deposited Rs 4,843 crore in an escrow account, an amount described by SEBI as “unlawful gains.” The firm maintains its innocence, claiming the trades in question were “standard arbitrage transactions.”
Following the deposit, SEBI lifted the trading ban on Jane Street last week, though investigations appear to be ongoing at multiple regulatory levels.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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