JPMorgan Unit Accused of Market Manipulation in Indian Stock Auction
JPMorgan's Mauritian unit, Copthall Mauritius Investment, is facing allegations of market manipulation from India's Securities and Exchange Board (SEBI).
The regulator banned the unit from accessing India's capital markets over alleged manipulative trades during a stock-market closing auction on August 13.
Copthall plans to seek more information and clarification from SEBI, but is unlikely to appeal the order for now. The approach could signal an attempt by JPMorgan to take a more cooperative stance with Indian regulators.
The unit is registered with SEBI as a foreign portfolio investor (FPI) and acts as a channel for investments by JPMorgan's global clients in India. A penalty of ₹3.7 crore was imposed on Copthall, described as unlawful gains.