Jane Street moves Supreme Court on legal privilege issue amid tax scrutiny

Jane Street operates trading subsidiaries in India and also manages offshore funds in Hong Kong and Singapore that are registered as foreign portfolio investors with SEBI

New York-based trading firm Jane Street has approached the Supreme Court of India amid an ongoing tussle with Indian tax authorities over the scope of legal protection for certain confidential internal communications, an Economic Times report said on Friday.

The publication noted that the private quantitative trader, which is facing scrutiny from both the tax department and capital market regulator, has filed a review petition seeking judicial clarity on what qualifies as "legal privilege".

The issue could have implications not only for Jane Street's trading operations in India but also for corporate entities more broadly.

The Economic Times highlighted that the plea has revived debate over whether confidential legal advice - including guidance provided by in-house legal teams acting in a legal advisory capacity - is protected under the Bharatiya Sakshya Adhiniyam, 2023, which replaced the Indian Evidence Act of 1872.

The filing is linked to enquiries by the Income Tax Department, which, during the course of its investigation, is understood to have sought access to certain internal emails of the overseas group, the newspaper said.

Jane Street operates trading subsidiaries in India and also manages offshore funds in Hong Kong and Singapore that are registered as foreign portfolio investors (FPIs) with the Securities and Exchange Board of India.