Income Tax Dept conducts survey operation in case against Jane Street

The Income Tax Department on Thursday (July 31, 2025) conducted a survey operation at the premises of some broking companies as part of an alleged tax evasion probe against Jane Street, the U.S.-based proprietary trading firm accused of market manipulation, official sources said.

Sources stated the department is undertaking a “verification” exercise in the backdrop of a recent Sebi action against Jane Street.

In an interim order issued on July 3, Sebi found Jane Street (JS) guilty of manipulating indices by simultaneously placing bets in cash along with futures and options markets to secure massive gains.

As a result, Sebi barred the hedge fund from accessing the market and impounded over ₹4,843 crore in gains. The probe found that JS made a profit of ₹36,671 crore on a net basis during the probe period from January 2023 to May 2025.

However, on July 21, Sebi permitted Jane Street to resume trading after the company deposited the mandated amount of ₹4,843.57 crore into an escrow account.