India Lifts JPMorgan Unit Trading Ban After SEBI Order

Key facts

• The Securities and Exchange Board of India (SEBI) lifted its trading ban on Copthall Mauritius Investment Ltd., a JPMorgan unit, and Mansi Share and Stock Broking after they deposited Rs 2.96 crore.
• The payment related to alleged unlawful gains from trades during the closing auction session on the BSE on August 13.
• The trades were aimed at influencing the indicative equilibrium price of the BSE Sensex Index and benefiting the entities' options positions linked to the benchmark.
• SEBI had accused both entities of market manipulation in an interim order issued in August and ordered them to hand over the alleged gains; its investigation will continue.
• SEBI had given both companies 21 days to respond to the allegations and is expected to issue a confirmatory order after examining responses and holding in-person hearings.
• Copthall is registered in Mauritius and once held Indian stocks worth more than Rs 5,500 crore, which had fallen to less than Rs 38 crore as of June 30.
• Copthall is separate from J.P. Morgan India Pvt., registered with SEBI as a stock broker and merchant banker, so the action does not directly affect most of JPMorgan's activities in India.