NEW DELHI, Aug 1 (Reuters) - U.S. trading firm Jane

Street is not co-operating with the income tax department in the

ongoing investigation against the firm, a government source who

has been briefed on the matter told Reuters on Friday.

India's income tax authorities are reviewing documents across

the local offices of Jane Street and its trading partner Nuvama

Wealth, two sources aware of the matter had said on

Thursday.

"Their servers are located outside India and access is being

blocked. The books of accounts are also maintained outside the

country, despite the requirement under Indian company law to

maintain them in India," the source said on condition of

anonymity as the proceedings are confidential.

"They have only a skeletal staff present here, who are also

not co-operating," the source added.

India's tax authorities did not immediately respond to

queries sent on email. An e-mail sent to Jane Street's

headquarters in the U.S. outside office hours also did not get

an immediate response.

India's markets regulator SEBI temporarily banned Jane

Street from trading in Indian markets on July 4, alleging the

firm manipulated stock indexes through its derivatives

positions.

According to the regulator's order, the Jane Street group

made a profit of $4.23 billion from trading in India between

January 2023 to May 2025.

The U.S. brokerage has deposited $567 million in an escrow

account, representing what the regulator said are "unlawful

gains," in a bid to resume trading while reserving its legal

rights.

SEBI has since

lifted restrictions

placed on the firm but the company has continued to stay

away from trading in India.