JPMorgan's Mauritius Unit Barred from India Markets over Closing Auction Manipulation Allegations

JPMorgan's Mauritius unit is facing allegations of non-compliance from India's market regulator, SEBI. The regulator banned the unit, Copthall Mauritius Investment Ltd., from participating in India's capital markets over alleged manipulation of the Closing Auction System.

The system was rolled out earlier this month to align with global standards and ensure fair stock prices. However, its rollout has faced pushback from traders following unexplained spikes in stock benchmarks during closing sessions.

Copthall is likely to argue that the alleged non-compliance was technical rather than manipulative, according to people familiar with the matter.

JPMorgan is also weighing launching an internal assessment to identify any compliance gaps. A spokesperson for JPMorgan declined to comment on the allegations and the regulator's order.