Sebi Tackles Wall Street Giants Over Manipulative Trades in India

India's securities regulator, Sebi, is stepping up its scrutiny of Wall Street giants operating in the country. The regulator has accused JPMorgan Chase & Co.'s Mauritius-based unit of executing manipulative stock trades and has signaled a more proactive approach to examining transactions by domestic and international traders.

Last year, Sebi accused Jane Street of market manipulation, an allegation that the US financial giant has denied. Other global heavyweights, including Bank of America and investment giant Capital Group, have already found themselves in regulatory crosshairs in India this year.

Regulators are particularly focused on India's options market, the world's largest by contracts traded, where financial firms have been piling in to capitalise on lucrative arbitrage and market-making opportunities. Firms like JPMorgan have increasingly made bets around the Indian market, but that calculus has the potential to change as tighter rules curb volumes and regulatory scrutiny intensifies.