India’s income tax authorities are reviewing documents across the local offices of U.S. trading firm Jane Street and its trading partner Nuvama Wealth, two sources aware of the matter said on Thursday
The sources requested anonymity as they are not authorized to speak to media.
India’s markets regulator on July 4 temporarily banned Jane Street from trading in Indian markets, alleging the firm manipulated stock indexes through its derivatives positions.
The U.S. brokerage has deposited $567 million in an escrow account, representing what the regulator said are “unlawful gains,” in a bid to resume trading while reserving its legal rights.
The firm has denied the allegations and called the trades basic arbitrage.
Nuvama said on Thursday evening that the review of the documents was still underway.
India regulator seeks trading data from exchanges in wider Jane Street probe, sources say
“The Company is extending full co-operation with the authorities and sharing requisite information,” Nuvama said in a statement to the exchanges.
Nuvama’s shares closed 2.33% lower on Thursday, in a weak broader market.
Emailed queries sent to Jane Street and India’s tax authorities were not answered.
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