Jane Street Probe: IT Raids Nuvama Wealth Over Market Manipulation Claims

In a significant regulatory development, the Income Tax Department has launched a search operation at Nuvama Wealth and Investment Ltd over its role in executing trades for US-based Jane Street, which is under investigation by Sebi for alleged market manipulation, as per news reports.

Nuvama's Role in Jane Street's Derivatives Trading Scheme

Nuvama Wealth, formerly Edelweiss Broking, served as Jane Street's local partner for trading in Indian stock markets. The IT Department conducted raids on the firm’s offices following Sebi's investigation that uncovered highly unusual expiry-day trading strategies. Jane Street was accused of manipulating key indices such as Nifty and Bank Nifty through large-scale intraday trades timed to exploit options positioning.

₹36,502 Crore in Profits Under Scrutiny

Between January 2023 and March 2025, Jane Street reportedly generated ₹36,502 crore in profits, with ₹43,289 crore from index options offset by losses of ₹7,687 crore in futures and cash segments. 

Sebi found ₹4,840 crore of these gains potentially unlawful and ordered them to be frozen. The firm allegedly executed heavy trades to influence index movements and booked profits using the volatility it created on expiry days.

Read More: Jane Street Requests Extension to Reply to SEBI’s Market Manipulation Order!

Regulatory Reactions and Market Impact

Sebi barred Jane Street in early July 2025 but allowed re-entry after the firm deposited ₹4,844 crore in an escrow account. While permitted back into the market, Jane Street committed to pausing its derivatives and cash market trading until strategy clarifications were submitted. Expiry-day trading volumes crashed after the ban, reflecting Jane Street’s heavy footprint in the Indian markets.

NSE and BSE Under Watch

Both NSE and BSE have been asked to monitor the firm’s future transactions closely. Previously, Nuvama responded to NSE’s queries, but Sebi continued enforcement due to the systemic impact the trading activity posed. Key expiry sessions saw Jane Street execute aggressive trades across over 40 large-cap stocks, including Reliance, SBI, and HDFC Bank, distorting natural market trends.

Nuvama Wealth Management Share Price Performance

On July 31, 2025, Nuvama Wealth Management share price opened at ₹7,375.00 on NSE, below the previous close of ₹7,412.50. During the day, it surged to ₹7,381.00 and dipped to ₹7,139.50. The stock is trading at ₹7,265.00 as of 2:57 PM. The stock registered a decline of 1.99%.

Over the past week, it has declined by 1.11%, over the past month, it has declined by 11.14%, and over the past 3 months, it has moved up by 20.34%.

Conclusion

The IT raids on Nuvama Wealth mark an escalated response to one of India’s most significant capital market manipulation cases. With huge profits drawn from expiry-day strategies and continued regulatory oversight, the spotlight remains on maintaining fair and transparent market practices.

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