India's capital markets regulator, the Securities and Exchange Board of India (Sebi), has lifted a trading ban on Copthall Mauritius Investment Ltd., a unit of JPMorgan Chase & Co., following a deposit of ₹2.96 crore. The prohibition was enacted due to alleged market manipulation related to index trading, though Sebi's investigation into the matter is ongoing.
Copthall Mauritius Investment Ltd., along with Mansi Share and Stock Broking, submitted the required amount last month. This action allows both entities to resume trading activities in India's capital markets, as reported on Wednesday, September 9, 2026.
The payment addresses alleged unlawful gains derived from trades executed during the closing auction session on the Bombay Stock Exchange (BSE) on August 13. Sebi had accused both firms of market manipulation in an interim order issued earlier in August.
According to findings, these trades were reportedly designed to influence the indicative equilibrium price of the BSE Sensex Index, thereby benefiting the entities' options positions linked to the benchmark index. Sebi had initially ordered Copthall and Mansi Share to surrender the alleged gains and provided them with 21 days to formally respond to the allegations.
The market regulator is now expected to issue a confirmatory order after reviewing their formal responses and granting both entities an opportunity for an in-person hearing.
JPMorgan's Broader India Operations Unaffected
It is important to note that Copthall Mauritius Investment Ltd., a Mauritius-registered entity, operates independently from J.P. Morgan India Pvt. Ltd., which is registered with Sebi as a stock broker and merchant banker. Consequently, the regulatory action against the Mauritian unit does not directly impact the majority of JPMorgan's broader activities in India, which are conducted through its local subsidiary.
Copthall has a history of significant investment activity in India, having once held Indian stocks valued at over ₹5,500 crore. However, its holdings had decreased to less than ₹38 crore as of June 30.