On July 31, 2025, the Income Tax Department raids began at the Mumbai offices of Nuvama Wealth & Investment Limited and Jane Street amid a high-profile probe into alleged market manipulation by the U.S.-based trading firm.
🕵️ What Triggered This Raid?
- The raids are part of an ongoing investigation into financial irregularities and potential manipulation tied to trading activity by Jane Street in India.
- Nuvama, formerly Edelweiss Broking, was Jane Street’s on-ground trading partner in India, drawing regulatory scrutiny despite no direct accusations against Nuvama.
💹 The Jane Street Case: A Brief Recap
- SEBI issued an interim ban on Jane Street on July 3, 2025, alleging the firm incurred massive profits of around ₹36,500 crore via expiry‑day trading strategies—raising suspicions of index manipulation.
- Jane Street later complied by depositing ₹4,844 crore of alleged illegal gains into an escrow account, enabling SEBI to lift its temporary trading restrictions on July 21.
📉 Stock Reaction & Market Jitters
- News of the raids triggered a drop in Nuvama shares, with its stock falling up to 4% intraday and reaching a low of ₹7,139.50 on the NSE. Business World
- This decline reflects investor anxiety as the regulatory net tightens over capital market trading practices.
🚀 Broader Implications
- The action underscores SEBI and Income Tax Department’s coordinated scrutiny of derivatives market integrity and trading collusion.
- Even though Nuvama is not implicated directly, its operational role in the case introduces reputational risk and may impact business relations with global trading firms.
✅ Quick Summary Table
| Key Element | Details |
|---|---|
| Date of Raid | July 31, 2025 |
| Entities Targeted | Nuvama Wealth & Jane Street India offices |
| Probe Focus | Jane Street’s alleged index manipulation |
| Nuvama’s Role | Local trading partner (no direct SEBI charges) |
| Market Reaction | Nuvama shares fell ~4% intraday |
| Follow-up | SEBI to monitor further trades, regulatory actions possible |
🔍 What Happens Next?
Authorities may follow the raids with detailed examinations of trade records, communications, and financial transactions linked to both entities. SEBI is expected to keep a close watch on expiry‑day strategies and derivative trades across all related accounts. Depending on findings, regulatory actions or enforcement orders could follow.
Bottom Line
The IT Department raids at the Nuvama and Jane Street offices in Mumbai mark a significant escalation in India’s enforcement landscape around market abuse. While Nuvama hasn’t been charged by SEBI, its close association with Jane Street casts a shadow over its trading partnerships. The case may have broader consequences for future foreign trading activity and the enforcement trajectory of Indian capital markets regulators.
