Indian tax officials have reportedly suggested denying Jane Street Group LLC tax treaty benefits with Singapore, and recommended taxing the firm’s profits as capital gains amid ongoing challenges with the Indian markets regulator SEBI.
Indian tax officials have reportedly suggested denying Jane Street Group LLC tax treaty benefits with Singapore, and recommended taxing the firm’s profits as capital gains amid ongoing challenges with the Indian markets’ regulator, according to a report by the Economic Times.
Officials of the investigation unit have reportedly recommended that invocation of general anti-avoidance rules (GAAR) be denied to Jane Street and that profits recorded by the company in India be taxed as capital gains, it said citing sources.
The income tax department’s investigation wing probed Jane Street’s profits following the Securities and Exchange Board of India (SEBI) 3 July order against the US-based trading firm for alleged manipulation, it added.
According to a Bloomberg report on the same, Jane Street and SEBI did not respond to queries outside of business hours.
What has SEBI alleged against Jane Street?
SEBI has accused the company and its entities in India, Hong Kong and Singapore of manipulating the Nifty and Bank Nifty indices and making “illegal” profits of around ₹36,500 crore and banned their operations on 3 July 2025.
Sebi alleged that Jane Street bought large quantities of constituents in the Bank Nifty index in the cash and futures markets to artificially support the index in morning trade, while simultaneously building large short positions in index options, which were exercised or allowed to expire later in the day.
The next week, the company was allowed to resume trading after it deposited ₹4,840 crore in an escrow account but sought an extension to rebut the allegations. In September, the company appealed the SEBI order in a Mumbai appeals court. The case is still pending.
New York-headquartered Jane Street made nearly $7 billion in trading revenue in the third quarter. It traded equities, stock futures and index options in India after it began operations following the COVID-19 pandemic. The firm made profits of more than $4 billion in trading stocks, futures and options between January 2023 and March 2025, according to SEBI’s initial order.
Jane Street Group was established in 2000 as a global proprietary trading firm in the financial services industry. As per the trading firm’s website, it has more than 3,000 employees across five global offices.
(With inputs from Bloomberg)
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