Sebi Acts Swiftly Against JPMorgan Unit Over Alleged Market Manipulation

The Securities and Exchange Board of India (Sebi) has taken swift action against JPMorgan Chase & Co.'s unit, Copthall Mauritius Investment Ltd., and local brokerage Mansi Share and Stock Broking Ltd. for allegedly manipulating trades during the new closing auction mechanism.

According to Sebi's 46-page order, the entities carried out trades that influenced the indicative equilibrium price of the BSE Sensex Index, benefiting their options positions linked to the benchmark.

The regulator alleged that the trading activity affected indicative closing prices even though the orders were not fully executed. The interim order has barred Copthall and Mansi Share from the capital market and ordered them to repay nearly ₹37 million in combined alleged unlawful gains to Sebi.

Former Sebi board member Ashwani Bhatia described the action as 'unprecedented', saying the regulator needed to identify potentially manipulative activity quickly as market participants adjust to the new system.