The Securities and Exchange Board of India has allowed Copthall Mauritius Investment Ltd., a JPMorgan Chase unit, to resume trading after the firm deposited ₹2.96 crore in alleged unlawful gains. The regulatory action follows investigations into suspected manipulation of the BSE Sensex Closing Auction Session on August 13, 2026. While the trading ban is lifted, the formal probe into the incident remains active.
The Securities and Exchange Board of India (SEBI) has permitted Copthall Mauritius Investment Ltd., an entity affiliated with JPMorgan Chase & Co., to restart its trading activities. This relief comes after the firm deposited ₹2.96 crore with the regulator, which represents the disgorgement of gains that SEBI alleged were linked to trading irregularities.
The investigation centers on the BSE Sensex Closing Auction Session (CAS) held on August 13, 2026. Regulators accused Copthall Mauritius, alongside Mansi Share and Stock Broking, of placing aggressive and outsized orders during this period. The allegation is that these entities used these trades to artificially influence the closing price of the index to secure favorable payouts on their existing derivative positions.
This incident is significant as it marks one of the first major enforcement actions under the newly introduced CAS framework, which became operational on August 3, 2026. The auction session was designed to help stabilize price discovery at the market close, but regulators have been monitoring it closely for potential abuse by institutional players. SEBI also impounded approximately ₹71.65 lakh from Mansi Share and Stock Broking in connection with the same trading session, indicating a broad regulatory focus on these activities.
While the immediate trading restriction has been removed, the investigation is not yet closed. The entities involved are currently participating in mandatory hearings and preparing formal responses to the initial allegations. SEBI is expected to issue a final confirmatory order only after these proceedings are completed.
For investors and market participants, it is important to distinguish between this Mauritius-based unit and the broader operations of the group. The enforcement action is specific to the entity named in the order and does not impact the separate local operations of J.P. Morgan India Pvt. Ltd., which serves as a registered stockbroker and merchant banker in the country. Moving forward, the key monitorable for the market will be whether this investigation leads to tighter compliance norms for foreign portfolio investors or adjustments to the guidelines governing the closing auction session.