SEBI Cracks Down on Wall Street Giants in India's $5 Trillion Market

The Securities and Exchange Board of India (Sebi) is cracking down on Wall Street giants operating in the country, signaling a tougher regulatory stance. The move comes as global banks and traders have been chasing profits in India's fast-growing economy.

Sebi has accused a Mauritius-based JPMorgan unit of executing manipulative stock trades. This is not an isolated incident; last year, Sebi also accused Jane Street of market manipulation, which the US financial giant has denied.

The regulator is using technology to closely track trades and identify sharp or unexplained swings in the market. This shift towards greater scrutiny is part of efforts to protect retail investors and promote market integrity.

Domestic players are not exempt from scrutiny either; a local brokerage, Mansi Share and Stock Broking, has been investigated alongside the JPMorgan unit. Sebi's chair, Tuhin Kanta Pandey, has emphasized using technology to monitor transactions and ensure compliance with rules.