JPMorgan India Unit Banned from Capital Markets Over Alleged Manipulation

A JPMorgan Chase unit in India is facing allegations of non-compliance from the Securities and Exchange Board of India (Sebi), but plans to take a conciliatory approach by seeking clarifications rather than immediately appealing the order.

The subsidiary, Copthall Mauritius Investment, has been banned from participating in India's capital markets due to alleged manipulation of the country's new closing auction for stock prices.

This is one of the first major actions taken against a global firm since Sebi accused Jane Street Group of similar misconduct last year. The Wall Street trading giant denied the charges and is pursuing an appeal in an Indian appellate court seeking access to additional documents.