JPMorgan's Unit and Copthall Barred from India's Capital Markets

The Securities and Exchange Board of India (Sebi) has barred JPMorgan's unit from India's capital markets in its first enforcement action concerning alleged manipulation of the country's new closing auction mechanism for stock prices.

According to Sebi's interim order, Copthall and Mumbai-based Mansi Share and Stock Broking Ltd allegedly carried out manipulative trades during the closing auction window on August 13 to influence the indicative equilibrium price of the BSE Sensex index.

The regulator imposed a penalty of Rs 3.7 crore on each entity, describing the amount as unlawful gains, and barred both from accessing the capital market.

The trading ban will be lifted once the entities return the alleged unlawful gains to Sebi, said Sebi board member Kamlesh Chandra Varshney in the order.