By Admin 
Nuwama wealth raid: The Income Tax Department on Thursday raided the offices of Mumbai in Mumbai of Nuwama Wealth and Investment Limited (which was previously known as Edelvis Broking). This action has been taken in connection with the investigation on possible financial irregularities related to trading firm Jane Street. Please tell that Nuwama used to work as Jane Street’s on-found trading partner in India.
The raids were conducted by the Income Tax Department after the SEBI’s ban from Jane Street last week. On July 21, a report by The Economic Times stated that Jane Street, while following the instructions of the Securities and Exchange Board of India (SEBI), agreed to submit Rs 4,843 crore to an escrow account, which SEBI had reportedly represented illegal benefits.
On July 3, SEBI banned the trading, accusing Jane Street, one of the world’s largest trading firms, of manipulating the stock market and creating disturbances in the derivative segment. SEBI had alleged that the company has incorrectly made a huge profit by manipulating the stock market. In this sequence, the regulator stopped Jane Street and its affiliates from doing trading in the Indian stock market.
It is alleged that the US based trading firm Jane Street first bought Nifty Bank shares and futures in the morning to increase prices and then sold these shares to earn money from falling prices in the option segment in the evening. SEBI said that Jane Street used to know at what time the Nifty Bank Index would fall, so he used to sell his share, while other traders did not even seem to have a clue, so they used to do their loss by doing business at the wrong time.
SEBI also imposed a fine of Rs 4,843.57 crore on Jane Street along with banning business. The company had to deposit this amount in a escrow account in the name of SEBI. When the company deposited the money, SEBI also lifted its ban last week. However, the case is still under legal investigation.
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