SEBI bans JPMorgan unit over alleged market manipulation
SEBI board member Kamlesh Varshney said two firms carried out manipulative trades during the closing auction window on August 13.
- Aug 20, 2026,
- Updated Aug 20, 2026 9:50 AM IST
India’s securities regulator has barred a Mauritius-based unit of JPMorgan Chase & Co. from the capital market over allegations of manipulating the country’s new auction-based system for determining share closing prices.
The Securities and Exchange Board of India (SEBI) has impounded ₹3.7 crore, described as wrongful gains made by JPMorgan’s Copthall Mauritius Investment Ltd. and local firm Mansi Share and Stock Broking Ltd., according to an initial order issued on Wednesday.
SEBI board member Kamlesh Varshney said the two firms carried out manipulative trades during the closing auction window on August 13 to influence the indicative equilibrium price of the BSE Sensex Index and benefit their options positions.
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The 46-page order states the firms placed large orders in Sensex stocks during the closing auction, accounting for more than 90% of all orders in some securities. They later cancelled large portions of those orders, affecting indicative closing prices without fully executing the trades.
Varshney wrote that these large buy and sell orders, placed and then cancelled, allowed the firms to avoid losses or wrongfully profit from derivatives trades that would have otherwise expired worthless.
The firms’ trading in underlying securities during the auction matched their expiry-day Sensex options positions, the order added.
SEBI introduced the auction-based system earlier this month to determine closing prices for over 200 stocks in India’s $5.1 trillion stock market. The system aims to align India with global markets and reduce manipulation, but traders have criticised it after unexplained spikes in stock benchmarks during the closing session.
This action comes a year after SEBI accused US proprietary trading firm Jane Street Group of market manipulation. Jane Street has denied the allegations and is appealing in an Indian court.
Copthall and Mansi Share have 21 days to respond to SEBI’s allegations and seek a personal hearing.
India’s securities regulator has barred a Mauritius-based unit of JPMorgan Chase & Co. from the capital market over allegations of manipulating the country’s new auction-based system for determining share closing prices.
The Securities and Exchange Board of India (SEBI) has impounded ₹3.7 crore, described as wrongful gains made by JPMorgan’s Copthall Mauritius Investment Ltd. and local firm Mansi Share and Stock Broking Ltd., according to an initial order issued on Wednesday.
SEBI board member Kamlesh Varshney said the two firms carried out manipulative trades during the closing auction window on August 13 to influence the indicative equilibrium price of the BSE Sensex Index and benefit their options positions.
MUST READ | Sebi chief has warned of strict action against market manipulators. Here's why
The 46-page order states the firms placed large orders in Sensex stocks during the closing auction, accounting for more than 90% of all orders in some securities. They later cancelled large portions of those orders, affecting indicative closing prices without fully executing the trades.
Varshney wrote that these large buy and sell orders, placed and then cancelled, allowed the firms to avoid losses or wrongfully profit from derivatives trades that would have otherwise expired worthless.
The firms’ trading in underlying securities during the auction matched their expiry-day Sensex options positions, the order added.
SEBI introduced the auction-based system earlier this month to determine closing prices for over 200 stocks in India’s $5.1 trillion stock market. The system aims to align India with global markets and reduce manipulation, but traders have criticised it after unexplained spikes in stock benchmarks during the closing session.
This action comes a year after SEBI accused US proprietary trading firm Jane Street Group of market manipulation. Jane Street has denied the allegations and is appealing in an Indian court.
Copthall and Mansi Share have 21 days to respond to SEBI’s allegations and seek a personal hearing.