India lifts trading ban on JPMorgan Copthall unit after deposit of $311,230
Indian regulators lifted a trading ban on Copthall Mauritius Investment Ltd., a JPMorgan unit, following its deposit of $311,230. The regulator maintains an active investigation into alleged market manipulation involving the BSE Sensex index.
India lifted a trading ban imposed on Copthall Mauritius Investment Ltd., a unit of JPMorgan Chase & Co., after the firm deposited $311,230 (29.6 million rupees) into a bank account. This payment was made to comply with an interim order by the Securities and Exchange Board of India regarding market manipulation charges.
According to people familiar with the matter, Copthall Mauritius and Mansi Share and Stock Broking deposited the alleged unlawful gains last month. These funds relate to trades executed in the closing auction session on August 13 at the Bombay Stock Exchange (BSE). The regulator ordered the handover after finding that both entities manipulated end-of-day trades to influence the indicative equilibrium price of the BSE Sensex Index.
Such manipulation benefited their options positions on the benchmark index. Although Copthall and Mansi Share were allowed to trade in India's capital markets following this decision, the regulator's investigation into the alleged manipulation will continue. Representatives for JPMorgan Chase and Mansi Share did not respond to requests for comment, and a spokesperson for the Indian regulator declined an immediate response.
