JPMorgan’s Copthall Mauritius to argue SEBI violation was technical, not manipulative

The regulator barred JPMorgan’s Mauritius unit from its capital markets in its first enforcement action over alleged manipulation of the country’s new closing auction for share prices. | Photo Credit:
REUTERS/Eduardo Munoz

A unit of JPMorgan Chase & Co that is accused of non‑compliance by market regulator SEBI is expected to argue that the problem was technical, not manipulative, according to sources familiar with the situation.

The subsidiary, Copthall Mauritius Investment Ltd, said it will seek clarification but does not intend to appeal the order at this stage, according to the sources, who requested anonymity because the details are not public.

This indicates a move toward a more cooperative stance with Indian regulators, who have grown more active in market reform and have not shied away from penalising foreign participants in the $5.1‑trillion Indian equity market.

SEBI’s ruling against the JPMorgan entity marks one of the first significant market‑manipulation cases against a global firm since the regulator last year accused Wall Street trading house Jane Street Group of comparable conduct. Jane Street denied the allegations and is appealing in an Indian appellate court to obtain further documents.

Last week, the regulator barred JPMorgan’s Mauritius unit from accessing the capital markets in its inaugural enforcement action over suspected manipulation of the country’s new closing auction for share prices.

Copthall is distinct from JPMorgan India Pvt., which holds SEBI registration as a stock broker and merchant banker. Consequently, the sanction on the Mauritian entity does not directly affect JPMorgan’s Indian operations, which are chiefly carried out via its local subsidiary.

JPMorgan is also considering an internal review to uncover any compliance gaps, the sources said. A JPMorgan spokesperson declined to comment.

Copthall said it will request further details on the SEBI interim order during a hearing aimed at clarifying the market‑manipulation allegations, according to the sources.

The unit, which channels investments from JPMorgan’s global clients into India, is registered with SEBI as a foreign portfolio investor.

Last Wednesday, SEBI issued an interim order against Copthall and the local brokerage Mansi Share and Stock Broking Ltd., asserting that both firms carried out manipulative trades during the Aug. 13 closing‑auction window to sway the indicative equilibrium price of the BSE Sensex, thereby boosting their options positions on the index.

The regulator imposed a fine of ₹3.7 crore (approximately $386,000) on each entity, describing the amount as unlawful gains, and barred them from the capital market.

SEBI board member Kamlesh Chandra Varshney said the trading bans on Copthall and Mansi Share will be lifted once the firms repay the unlawful gains. He called for a swift, impartial review of the trades, independent of his order’s conclusions, and gave the entities 21 days to respond to the allegations, including the option to request a personal hearing.

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Published: August 24, 2026