Global trading firm Jane Street is reportedly not cooperating with the ongoing Income Tax Department investigation in India, according to sources familiar with the matter. The development follows a recent I-T survey at the Mumbai premises of Nuvama Wealth Management, a local partner of Jane Street.
Key Issues Highlighted by Authorities
According to sources cited by Moneycontrol on August 1:
- Jane Street’s servers and books of accounts are located outside India, limiting access for Indian tax authorities.
- The company maintains only a skeletal staff in India, who are also reportedly uncooperative with the investigation.
- This is despite legal requirements under Indian company law to maintain financial records within the country.
“Their servers are located outside India and access is being blocked. The books of accounts are also maintained overseas. The few staff present here are not cooperating,” a source said.
Officials believe it is too early to draw conclusions. They will assess the company’s transaction data, books of account, and management control to determine any possible violations.
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Recent Background
- The probe into Jane Street gained momentum after the I-T department conducted a survey at Nuvama Wealth’s Mumbai office—an entity reportedly acting as Jane Street’s on-ground trading partner in India.
- This follows SEBI’s recent move to lift a trading ban on Jane Street after the company made a deposit as part of regulatory compliance.
Quick Neutral Analysis
Jane Street’s non-compliance with Indian record-keeping laws and limited operational footprint in India have drawn attention from tax authorities.
- The firm’s international data storage practices are creating barriers to the Indian probe.
- The I-T department is expected to evaluate the company’s operational control and financial records before deciding the next course of action.
This situation underscores increasing scrutiny on foreign financial entities operating in India, especially concerning tax transparency and regulatory compliance.
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