JPMorgan’s Mauritius unit is considering a more conciliatory approach towards SEBI.
Copthall is likely to argue that the issue was technical rather than deliberate manipulation.
SEBI has banned the unit from the capital markets over alleged manipulation during a stock-market closing auction.
JPMorgan Chase’s Mauritius-based investment unit, Copthall Mauritius Investment, is likely to argue that the issue behind its recent action by India’s market regulator was technical in nature rather than deliberate market manipulation, according to a Bloomberg report.
Copthall plans to seek more information and clarification from the Securities and Exchange Board of India (SEBI), but is unlikely to appeal the order for now, people familiar with the matter told the news agency.
1 August 2026
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The approach could signal an attempt by JPMorgan to take a more cooperative stance with Indian regulators, which have stepped up enforcement against market-related violations.
Why SEBI Banned JPMorgan’s Mauritius Unit
SEBI last week barred Copthall from accessing India’s capital markets in its first enforcement action over alleged manipulation of the country’s new closing auction mechanism for stock prices.
According to SEBI’s interim order, Copthall and Mumbai-based brokerage Mansi Share and Stock Broking allegedly carried out manipulative trades during the closing auction window on August 13.
The regulator alleged that the trades were aimed at influencing the indicative equilibrium price of the BSE Sensex and benefiting the entities’ positions in benchmark options.
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SEBI imposed a penalty of ₹3.7 crore on the two entities, which it described as unlawful gains, and barred them from accessing the capital markets. The trading restrictions will be lifted once the entities return the alleged unlawful gains to the regulator.
What JPMorgan’s Unit Plans To Do
Copthall is expected to seek additional information when it gets an opportunity to respond to SEBI’s interim order, according to the people cited by Bloomberg.
The unit is registered with SEBI as a foreign portfolio investor (FPI) and acts as a channel for investments by JPMorgan’s global clients in India. Copthall is separate from JPMorgan India Pvt., which is registered as a stock broker and merchant banker.
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The order against Copthall therefore does not directly affect most of JPMorgan’s India operations, which are conducted through its local entity. JPMorgan is also considering an internal review to identify any possible gaps in its compliance processes, according to the report.
Copthall and Mansi Share have 21 days to respond to SEBI’s allegations, including by requesting a personal hearing. SEBI board member Kamlesh Chandra Varshney has also ordered a detailed examination of the trades.
