SEBI Bars JPMorgan Unit Over Alleged Market Manipulation

India's securities regulator, SEBI, has taken its first major action against an international firm for alleged market manipulation. JPMorgan Chase & Co.'s Mauritius-based unit, Copthall Mauritius Investment Ltd., was barred from participating in India's capital markets after it allegedly manipulated the closing auction for stock prices on August 13.

The regulator impounded 37 million rupees ($386,000), which it described as wrongful gains made by Copthall and local firm Mansi Share and Stock Broking Ltd. SEBI's order alleged that Copthall and Mansi executed manipulative trades during the closing auction window to influence the indicative equilibrium price of the BSE Sensex Index.

The regulator found that the two firms placed outsized orders in Sensex stocks, accounting for more than 90% of all orders in some securities. They canceled large portions of these orders near the highest allowed price band, influencing indicative closing prices without fully executing trades.