Income Tax Department Carries Out Raids at Offices of Nuvama, Jane Street in Mumbai
Shares of Nuvama Wealth Management slipped 2.33% to close at ₹7,239.2 apiece on the NSE.
The Income Tax Department is conducting surveys at the offices of Nuvama Wealth Management and Jane Street in Mumbai, according to a report by CNBC-TV18 citing sources. Nuvama acts as the on-ground trading partner of Jane Street in India.
Shares of Nuvama Wealth Management dropped by 2.33% to end the day at ₹7,239.2 per share on the NSE.
In a regulatory statement on Thursday, Nuvama said, “The Income Tax Department is carrying out a survey today, under Section 133A of the Income Tax Act, 1961, at the company’s registered office. The company is fully cooperating with the authorities and furnishing the required information.”
The survey is still ongoing. The company will provide necessary disclosures, if any, to the stock exchanges under SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. According to the filing, the company’s business operations remain unaffected.
“Further, we wish to clarify and confirm that the company is in compliance with Regulation 30 of the Listing Regulations and has been regularly submitting necessary disclosures to the Stock Exchanges, as mandated from time to time. The company shall continue to do so as per the requirements of the Listing Regulations,” Nuvama added.
US-based hedge fund Jane Street was barred from trading in Indian markets by SEBI on July 4, over allegations of manipulating the index through derivatives. The market watchdog alleged that the firm had driven up the Bank Nifty index by aggressively purchasing constituent stocks in both the cash and futures segments during early trade, while simultaneously building short positions in index options to profit from the artificially inflated levels.
Jane Street denied the allegations, stating that the trades were part of a lawful arbitrage strategy. In an effort to resume trading activities, the firm deposited ₹4,843 crore in an escrow account, which SEBI identified as the value of the alleged ill-gotten gains.
Following the escrow deposit, SEBI revoked the trading ban last week, though the matter is still under legal examination.
