Jane Street Dispute Goes to Supreme Court: Here's What at Stake for Corporate Privacy

US-based trading firm Jane Street, which is locked in a tax dispute with Indian authorities has taken the matter to the Supreme Court. The company wants the apex court to clearly define what counts as "legal privilege"— that is, which private communications are protected from being shared with investigators, The Economic Times reported.

The issue has come up as part of a tax inquiry, where officials are reportedly seeking access to some of Jane Street's internal emails and documents. The firm, which operates both in India and overseas through subsidiaries and funds registered with market regulator SEBI, says it needs clarity on whether certain legal discussions, especially those involving in-house lawyers, should be shielded from scrutiny.

At the core of the matter is a new law, Bharatiya Sakshya Adhiniyam (BSA), 2023, which replaced the old Evidence Act. The law defines what kinds of lawyer-client communications are protected. SC in an earlier ruling said that some internal legal communications may be privileged, while others, especially routine emails between company officials, would not be covered.

Jane Street is now asking the top court to review that interpretation and clarify how it applies to its case. SC has accepted the company’s petition and marked the matter for a hearing on March 25.

The case involves allegations by SEBI that the trading firm engaged in market manipulation by distorting Bank Nifty index levels to profit from options trades.

Although SEBI flagged the alleged manipulation in 2025, the probe actually began after Jane Street filed a 2024 lawsuit against rival Millennium Partners, accusing it of stealing trade secrets—a case that drew attention to the firm's strategies in the Indian market.

Following its 2024 probe, SEBI alleged that between 2023 and 2025, Jane Street used large trades in the cash market on expiry days to influence index prices. The regulator claimed that from January 2023 to March 2025, the firm manipulated the Bank Nifty index on 18 expiry days, leading to heavy losses for retail investors.

SEBI asked the company to deposit over ₹4,800 crore in alleged illegal gains. Jane Street complied and deposited the amount in an escrow account in July 2025 while continuing to challenge the charges. After the payment was made, SEBI lifted the temporary trading restrictions imposed on the firm.