Nuvama Wealth clarifies on I-T survey; stock slips 2%

Shares of Nuvama Wealth Management Ltd (formerly Edelweiss Broking) slipped on Thursday after the Income Tax (I-T) department initiated survey operations at the company's office, in connection with the ongoing investigation into Jane Street, which is Nuvama's trading partner in India. The stock declined 2.46 per cent to close at Rs 7,228.55 on the BSE.

In a clarification to the exchanges, Nuvama confirmed that the I-T department was conducting a survey under Section 133A of the Income Tax Act, 1961, at its registered office. "The company is extending full co-operation with the authorities and sharing requisite information. The survey is yet to be concluded. The company continues to operate business as usual," it said. The firm also assured that any material developments will be disclosed in compliance with Sebi's Listing Obligations and Disclosure Requirements (LODR) Regulations.

BSE has categorised Nuvama Wealth under "High Promoter Encumbrance" -- a classification applied when a company's promoters have pledged a substantial portion of their shareholding.

Simultaneously, the I-T department has also reportedly launched search operations at Jane Street's offices. The US-based proprietary trading firm is under the scanner for its alleged role in stock market manipulation in India.

Jane Street has been a major client for Nuvama's clearing and broking business, and any disruption in activity could have an adverse impact. In a recent note, Bernstein highlighted that lower trading volumes from Jane Street in FY26 may weigh on Nuvama's short-term growth trajectory.

This enforcement action follows the Securities and Exchange Board of India's (Sebi's) recent directive, which allowed Jane Street entities to resume trading after the firm deposited $567 million (around Rs 4,843.50 crore) in escrow accounts. However, Sebi also cautioned the firm to cease and desist from engaging in any fraudulent or manipulative practices.