Nuvama Wealth Management said on Thursday the Indian income tax department was conducting a survey at its registered office in Mumbai under Section 133A of the Income Tax Act.
The company said it was cooperating fully with authorities and providing necessary information.
Shares of the company fell nearly 3% earlier in the day after media reports of tax department searches at its broking unit, the company said.
Nuvama said it was unaware of any undisclosed information that could explain the stock movement and added it would make regulatory disclosures, if required, once the survey concludes.
“The company continues to operate business as usual,” Nuvama said in an exchange filing.
The statement confirms a CNBC-TV18 exclusive that the Income Tax Department is conducting surveys at the Mumbai offices of Nuvama and US-based trading firm Jane Street, in connection with an ongoing probe into alleged market manipulation involving Jane Street, according to sources.
This development comes days after the Securities and Exchange Board of India (SEBI) lifted trading restrictions on Jane Street. On July 21, SEBI allowed the firm to resume trading activities after it deposited ₹4,843.57 crore in an escrow account, as directed by the regulator.
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