Income Tax Probe Hits Roadblocks

Global trading company Jane Street is reportedly not cooperating with the Income Tax Department's ongoing investigation in India. Sources reveal that the company's essential servers, located outside India, are inaccessible to officials, significantly hindering the probe.

Challenges in Accessing Financial Records

Despite Indian company law requirements, Jane Street maintains its financial records overseas, complicating the investigation further. The company's minimal presence in India and lack of staff cooperation have reportedly stalled progress.

SEBI's Interim Order on Market Manipulation

The Securities and Exchange Board of India (SEBI) has issued an interim order against Jane Street Group, aiming to recover Rs 4,843.57 crore in illegal gains from alleged index manipulation. The order targets four entities within the group, accusing them of influencing the market for substantial profits.

Jane Street's Response and Compliance

Jane Street has acknowledged SEBI's directives to cease all manipulative trading practices and has complied by depositing the mandated amount into an escrow account, allowing them to resume trading.

Recent Developments

Following SEBI's action, the Income Tax Department conducted surveys at several broking companies linked to Jane Street, as part of a tax evasion probe. The department is verifying information in light of the recent SEBI order, which found Jane Street guilty of manipulating indices for massive gains.