1. Tax Investigation Stalled by Overseas Servers
- U.S.-based global trading firm Jane Street is under investigation by India’s Income Tax Department.
- Key servers and books of accounts are maintained outside India, violating Indian company laws.
- Authorities report being blocked from accessing critical data stored overseas.
- The firm has minimal staff in India, and local employees are reportedly uncooperative, slowing the probe.
2. SEBI Accuses Jane Street of Index Manipulation
- On July 4, SEBI issued an interim order accusing Jane Street Group of market manipulation.
- Four Jane Street entities—JSI Investments Pvt Ltd, JSI2 Investments Pvt Ltd, Jane Street Singapore Pte Ltd, and Jane Street Asia Trading Ltd—were ordered to deposit ₹4,843.57 crore, one of the largest ever recoveries by the regulator.
- The firm allegedly used profit-maximizing strategies to manipulate index options, while absorbing smaller losses in other segments.
3. Conditional Resumption of Trading
- On July 21, SEBI allowed Jane Street to resume trading after the ₹4,843 crore was deposited in an escrow account.
- However, SEBI directed them to cease and desist from all fraudulent or manipulative practices.
- The entities have agreed to comply with SEBI’s conditions going forward.
