SEBI Cracks Down on Foreign Firms in India's $5 Trillion Stock Market
India's Securities and Exchange Board (SEBI) has been cracking down on foreign financial firms, including JPMorgan Chase & Co., in its $5 trillion stock market. The regulator accused a Mauritius-based unit of JPMorgan of executing manipulative stock trades.
Last year, SEBI also targeted Jane Street, accusing the US firm of market manipulation, although Jane Street has denied any wrongdoing.
SEBI's new approach is aimed at protecting retail investors from losses as they operate on the other side of trades conducted by global entities. Indian retail traders lost around $9.6 billion trading equity futures and options in the year ended March.
The regulator is using technology to track trades and identify potential manipulation, and has signaled that it welcomes global players but will not tolerate rule-breaking.