SEBI turns up heat on Wall Street giants

India's Securities and Exchange Board of India (Sebi) is intensifying its oversight of Wall Street traders, including prominent global players like JPMorgan Chase & Co., as the country’s securities regulator grows more aggressive in its pursuit of market integrity. In recent days, Sebi has accused a Mauritius-based JPMorgan unit of executing manipulative stock trades, marking a shift from the more lenient approach of previous decades when foreign securities firms rarely faced penalties in India.

Last year, Sebi took a dramatic stance against Jane Street, accusing the US financial giant of market manipulation—an allegation that the firm has vehemently denied. Regulators are now focusing their scrutiny on India’s booming options market, the world’s largest by contracts traded, where foreign financial firms are capitalizing on lucrative arbitrage and market-making opportunities.

In an effort to protect retail investors and maintain market integrity, Sebi’s chair Tuhin Kanta Pandey has emphasized the use of technology to closely track trades, particularly when there are sharp or unexplained swings in the market. This proactive stance comes at a time when global banks and traders are flocking to India, chasing profits in one of the world’s fastest-growing economies.

While domestic players have also been under the microscope, international financial giants have historically enjoyed more lenient treatment. Sebi is striving to send a clear message that no firm is exempt from punishment if it breaches market conduct rules. Sebi has not yet commented on the latest developments.