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

Last week, the regulator banned the JPMorgan Mauritius unit from its capital markets in the first enforcement action over alleged manipulation of the country’s new closing auction for stock prices.
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A JPMorgan Chase & Co unit facing allegations of non-compliance from market regulator SEBI is likely to contend that the issue was technical in nature rather than manipulative, people familiar with the matter said.

The subsidiary — called Copthall Mauritius Investment Ltd — plans to seek clarifications but is unlikely to appeal the order for now, the people said, asking not to be named discussing information that isn’t public. 

That would suggest an effort to take a more conciliatory approach towards Indian regulators, who have become increasingly proactive in reforming the market and haven’t hesitated in penalizing foreign firms active in its $5.1 trillion stock market. 

SEBI’s finding against the JPMorgan unit represents one of the first major actions over market manipulation involving a global firm since the regulator accused the Wall Street trading giant Jane Street Group of similar misconduct last year. The firm denied the charges and is pursuing an appeal in an Indian appellate court seeking access to additional documents.

Last week, the regulator banned the JPMorgan Mauritius unit from its capital markets in the first enforcement action over alleged manipulation of the country’s new closing auction for stock prices.

Copthall is separate from JPMorgan India Pvt., which is registered with SEBI as a stock broker and merchant banker. The order against the Mauritian entity, therefore, does not directly impact JPMorgan’s activities in India which are mostly conducted through its local unit.

JPMorgan is also weighing launching an internal assessment to identify gaps in compliance, if any, the people said. A spokesperson for JPMorgan declined to comment.

Copthall will seek additional information on an interim order from SEBI when they get a hearing to clarify allegations of market manipulation, the people said.

The unit, which acts as a conduit for investments by JPMorgan’s global clients in India, is registered as a foreign portfolio investor with SEBI. 

Last Wednesday, SEBI published an interim order against Copthall and a local brokerage Mansi Share and Stock Broking Ltd. In that, it alleged both firms executed manipulative trades during the closing auction window on Aug. 13 to influence the indicative equilibrium price of the BSE Sensex Index, benefiting their options positions on the benchmark. 

The regulator fined both entities ₹3.7 crore ($386,000) in what it termed were unlawful gains and banned them from accessing the capital market.

The trading ban on Copthall and Mansi Share will be lifted once the entities pay back unlawful gains to the regulator, SEBI board member Kamlesh Chandra Varshney said in the order. He has sought a detailed examination of the trades which he said should be completed quickly and without being influenced by the findings of his order. Both entities have 21 days to respond to the allegations, including by seeking a personal hearing.

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Published on August 24, 2026