Sebi Steps Up Scrutiny of Wall Street Traders Over Market Manipulation Allegations

The Securities and Exchange Board of India (Sebi) is increasing its scrutiny of Wall Street traders, including JPMorgan Chase & Co. and Jane Street.

Last year, Sebi accused Jane Street of market manipulation, a charge the US financial giant has denied.

In one recent case, Sebi alleged that a Mauritius-based JPMorgan unit, Copthall Mauritius Investment Ltd., placed outsized orders in Sensex stocks during the closing auction, accounting for more than 90% of orders in some securities. The regulator said this influenced indicative closing prices without fully executing trades.

Sebi 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.