SEBI Bars JPMorgan Unit From Markets Over Sensex Price Manipulation
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SEBI has barred a JPMorgan unit from trading in the securities market in connection with a Sensex price manipulation. The regulatory action follows an investigation into trading activity linked to the benchmark index.
The Securities and Exchange Board of India (SEBI) has barred JPMorgan Chase & Co.’s Mauritius-based unit Copthall Mauritius Investment Ltd. from India’s capital markets.
The ban comes after SEBI alleged that Copthall Mauritius Investment Ltd. and Mansi Share and Stock Broking Ltd. used large orders and cancellations during the Sensex closing auction on 13 August 2026 to influence indicative prices.
The regulator has impounded ₹3.7 crore linked to the trades and ordered a detailed examination of the matter.
SEBI Action Focuses On Closing Auction Orders
SEBI alleged that the orders were unusually large compared with other market activity and were subsequently cancelled without being fully executed.
The numbers cited in the order highlight the scale of the activity:
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Copthall placed buy orders for 3.17 million shares, nearly 12 times the quantity placed by the next-largest participant.
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Mansi Share placed sell orders covering 1.28 million shares and later cancelled almost all of them.
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In some securities examined by SEBI, the two entities accounted for more than 90% of the orders during the auction.
New Closing Auction System Comes Under Scrutiny
The action comes shortly after SEBI introduced the auction-based closing system for more than 200 stocks in India’s $5.1 trillion stock market. The framework was intended to align the market with global practices and reduce scope for manipulation.
But traders have raised concerns over sharp and unexplained benchmark movements during the closing period.
Average turnover during the auction has also fallen 40% from the level recorded during the final 15 minutes under the earlier system.
What Happens Next For The JPMorgan Unit?
Copthall and Mansi Share have 21 days to respond to SEBI’s allegations and may request a personal hearing. SEBI board member Kamlesh Varshney has also ordered a detailed examination of the trades, with the investigation set to continue independently of the prima facie findings recorded in the interim order.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
