Jane Street not cooperating in probe with income tax department: Report

US-based global trading firm Jane Street is not cooperating with the income tax department in its ongoing probe, reported news agency Reuters on Friday. The firm is facing investigation over its operations and tax compliance in India.

According to the source mentioned in the report, Jane Street has not provided access to important documents and data that the tax authorities have asked for. The firm’s servers are located outside India, and officials said they are unable to access them.

Additionally, accounts books are also being maintained overseas, even though company law requires them to be kept in India.

“They have only a skeletal staff present here, who are also not cooperating,” the government official said, cited in the report.

“Their 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,” said a source quoted by Reuters.

As part of the inquiry, tax officials are reviewing documents and operations across Jane Street’s India offices and those of its local trading partner Nuvama Wealth. The probe is still in its early stages, and officials say they are facing difficulty due to lack of cooperation.

Earlier this month, markets regulator Sebi had temporarily barred Jane Street from trading in the Indian market. The July 4 order alleged that the firm had manipulated stock indexes through its positions in derivatives.

Sebi’s investigation found that Jane Street earned a profit of $4.23 billion from trading in India between January 2023 and May 2025. In response, the firm deposited $567 million in an escrow account. This amount, according to the regulator, represents what it described as “unlawful gains”.

Jane Street made this deposit to demonstrate its intent to settle the issue while keeping its legal options open. Following this, Sebi lifted the trading restrictions. However, despite the regulator clearing the path, Jane Street has not resumed trading in India.

The ongoing tax probe and issues of data access are now seen as the next hurdle in resolving the matter.

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