India’s market regulator has lifted the broader trading restriction on a JPMorgan-linked entity and Mansi Share and Stock Broking after they deposited funds linked to an alleged market-manipulation case.
The action follows allegations by the Securities and Exchange Board of India (SEBI) that the entities used aggressive trades during the closing auction session to influence Sensex prices.
Trading Can Resume
Copthall Mauritius Investment, a JPMorgan unit, deposited around Rs 2.96 crore, while Mansi Share deposited about Rs 71.65 lakh. Following the payments, the wider restrictions on their market access were lifted.
However, one major restriction remains. Copthall is still barred from participating in the closing auction session while SEBI’s investigation continues.
What Triggered the Action?
SEBI had flagged unusual price movements during the August 13 closing auction. The regulator alleged that large buy and sell orders influenced Sensex prices and could have benefited the entities’ derivatives positions.
The closing auction plays an important role in determining the official closing price used for settling certain market contracts.
The investigation is still ongoing, and further action will depend on the regulator’s findings.
The restriction applies to JPMorgan’s Mauritius-based entity and does not directly affect the bank’s separate operations in India.
For now, the wider trading ban has been lifted, but the continued auction restriction shows that SEBI is keeping a close watch on the matter.
