SEBI’s swift ban on JPMorgan unit seen as warning to traders
Crackdown underscores SEBI’s determination to ensure success of Closing Auction System
India's securities regulator, SEBI, issued an interim order against a JPMorgan Chase unit within six days of alleged manipulative trading, seen as a warning to traders following the launch of India's new closing stock auction system. SEBI's swift action contrasts with past practices that often took years to issue such rulings. The crackdown aims to ensure the success of the Closing Auction System, a significant reform to India's stock market.
The order against JPMorgan's unit Copthall Mauritius Investment Ltd and local brokerage firm Mansi Share and Stock Broking Ltd will be lifted once they pay back unlawfully gained funds. SEBI's new system allows for quicker detection of manipulation by focusing on discrete auction windows, making it easier to surveil than the previous regime.
The challenges for the regulator are mounting, but SEBI's swift action sends a clear message that the Closing Auction System is here to stay.
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