JPMorgan Unit Lifting of Trading Ban Confirmed Amid Index Manipulation Probe
India's market regulator has lifted its trading ban on JPMorgan Chase & Co.'s unit, Copthall Mauritius Investment Ltd., after it deposited 29.6 million rupees ($311,230) in a bank account to comply with an order related to alleged index manipulation charges.
The Securities and Exchange Board of India (SEBI) had accused Copthall and Mansi Share and Stock Broking of executing manipulative trades during the end-of-day auction on August 13 to influence the indicative equilibrium price of the BSE Sensex Index, benefiting their options positions on the benchmark.
While SEBI has allowed both entities to trade in India's capital markets, its investigation into the alleged market manipulation will continue. The regulator is planning to release a confirmatory order after studying the formal responses of both Copthall and Mansi Share to its allegations, and give each an in-person hearing.
Copthall, registered in Mauritius with a history of investment activity in India, held Indian stocks worth over 55 billion rupees at one point but has since reduced its holdings to less than 380 million rupees as of June 30.