SEBI bans JPMorgan unit for auction manipulation

India's India — Securities and Exchange Board of India (SEBI) issued an interim order on August 19, 2026, banning Mauritius-based Copthall Mauritius Investment, a unit of JPMorgan Chase, and local brokerage Mansi Share and Stock Broking Private Limited from the capital markets for alleged manipulation of the newly introduced closing auction system. SEBI impounded 36.8 million rupees (about $385,000) as wrongful gains. The regulator alleged that on August 13, during the closing auction window, the two firms placed and then cancelled large orders in S&P BSE Sensex constituent stocks, influencing the indicative closing price to benefit their expiring options positions. Copthall placed buy orders for 3.17 million shares, nearly 12 times the next largest participant, and cancelled almost a third; Mansi placed sell orders for 1.28 million shares and scrapped nearly all. SEBI board member Kamlesh C Varshney signed the order, which gives the firms 21 days to respond. The action is the first major enforcement against a global firm since SEBI accused Jane Street Group of manipulation last year. The closing auction, introduced on August 3 for over 200 stocks in the $5.1 trillion market, has faced criticism for volatility and reduced liquidity, with average auction turnover down 40%. SEBI Chairman Tuhin Kanta Pandey has said the system will remain.