India bars JPMorgan unit for alleged market manipulation
SEBI 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
The Securities and Exchange Board of India (SEBI) has banned a Mauritius-based unit of JPMorgan Chase & Co., Copthall Mauritius Investment Ltd., and local firm Mansi Share and Stock Broking Ltd., from the capital market over allegations of market manipulation. The regulator impounded 37 million rupees ($386,000) from the firms, citing wrongful gains made through manipulative trades during the closing auction window on August 13.
The order, published by SEBI board member Kamlesh Varshney, alleges that the firms undertook manipulative trades to influence the indicative equilibrium price of the BSE Sensex Index, benefiting their options positions on the benchmark. SEBI's crackdown highlights the challenges the regulator faces after introducing an auction-based system to determine the closing prices of over 200 stocks in the $5.1 trillion stock market.
Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
