Sebi Cracks Down on Foreign Traders in India's $5 Trillion Stock Market
The Securities and Exchange Board of India (Sebi) is cracking down on foreign traders in its $5 trillion stock market, targeting prominent players like JPMorgan Chase & Co. The regulator has accused a Mauritius-based JPMorgan unit of executing manipulative stock trades.
Last year, Sebi accused Jane Street of market manipulation, an allegation the US financial giant has denied. To comply with the order, Jane Street deposited over $500 million in an escrow account and is pursuing an appeal in an Indian court seeking access to additional documents.
Sebi's chair, Tuhin Kanta Pandey, has emphasized using technology to track trades when there are sharp or unexplained swings in the market. The regulator has signaled internally that it is getting more proactive in examining transactions by domestic and international traders as part of an effort to protect retail investors.
Global heavyweights like Bank of America Corp. and Capital Group have also faced regulatory scrutiny in India this year, with Sebi sending a show cause notice to Bank of America alleging employees shared non-public information about a 2024 block trade.