Daijiworld Media Network - New Delhi

New Delhi, Feb 7: Indian officials have recommended denying Jane Street Group LLC benefits under the tax treaty with Singapore, potentially intensifying the challenges faced by the US-based trading firm in India, the Economic Times reported.

The income tax department’s investigation unit suggested invoking general anti-avoidance rules and recommended that profits recorded by Jane Street in India be taxed as capital gains. The probe focused on the period examined by India’s market regulator, the Securities and Exchange Board of India (SEBI), over alleged market manipulation.

SEBI’s July 3 interim order alleged that Jane Street and its entities in India, Singapore, and Hong Kong manipulated markets, directing the firm to disgorge over ?48 billion as “illegal gains.” While Jane Street complied with the regulator’s order, it has denied the allegations and filed an appeal in a Mumbai appeals court in September, which is still pending.

Jane Street, a global quantitative trading giant headquartered in New York, reported nearly $7 billion in trading revenue in the third quarter. The firm has been active in trading equities, stock futures, and index options in India since post-pandemic operations, generating profits exceeding $4 billion between January 2023 and March 2025, according to SEBI’s initial findings.