Market Regulator Bans JPMorgan Unit From Trading Over Sensex Price Rigging
The Securities and Exchange Board of India (SEBI) has banned a JPMorgan unit from capital markets for alleged price manipulation during stock closing auctions. The regulator impounded 37 million rupees in wrongful gains, marking a significant enforcement action against an international firm.
Why it matters
This action highlights regulatory challenges in maintaining market integrity as India transitions to new auction-based trading systems to align with global standards.
India's securities regulator banned a Mauritius-based unit of JPMorgan Chase & Co. from its capital markets, the first enforcement action over alleged manipulation of the country's new closing auction for stock prices.The Securities and Exchange Board of India impounded 37 million rupees ($386,000), which it described as wrongful gains made by JPMorgan unit Copthall Mauritius Investment Ltd. and local firm Mansi Share and Stock Broking Ltd., according to an initial order published late Wednesday. The order by SEBI board member Kamlesh Varshney alleged that Copthall and Mansi Share executed manipulative trades during the closing auction window on August 13 to influence the indicative equilibrium price of the BSE Sensex Index, benefiting their options positions on the benchmark.A spokesperson for JPMorgan declined to comment, while Mansi Share didn't respond to an email request for comment.SEBI's finding against the JPMorgan unit represents one of the first major actions over market manipulation involving an…
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