Tax Investigation on Nuvama Wealth Amid Jane Street Scandal

The Income Tax Department initiated a survey of Nuvama Wealth Management's premises on Thursday amid ongoing tax evasion investigations concerning Jane Street, a US-based trading firm accused of market manipulation. Nuvama Wealth, Jane Street's local partner, confirmed the survey in regulatory communications, stating full cooperation with authorities.

The scrutiny follows Sebi's interim order that found Jane Street manipulating financial indices to amass substantial profits. Consequently, Sebi restricted the hedge fund's market access, confiscating Rs 4,843 crore as illicit gains. Despite this, the company resumed trading after depositing the specified amount into an escrow account.

Jane Street, established in 2000, is a multinational proprietary trading firm with a significant global presence, employing over 2,600 individuals and operating across numerous countries. The ongoing investigations reflect heightened regulatory oversight in the financial trading industry.

(With inputs from agencies.)