Tax Authorities Probe Jane Street Over Treaty Misuse

Jane Street has denied Sebi allegations, but has not made any public comments so far on the tax investigation

- Reuters

The tax authorities are investigating whether Jane Street violated tax laws by booking profits via its Singapore entities on its derivative trades in the Indian market, three people briefed on the matter said.

Searches at the US trading firm's India offices by the income tax department have been underway since last week, the people said. A government official who was briefed on the matter later said that Jane Street staff were not cooperating.

The tax authorities' inquiries follow a temporary ban by the Securities and Exchange Board of India (Sebi), the market regulator, which publicly alleged that the firm manipulated stock indexes through its derivatives positions.