SEBI has restored general trading access to Copthall Mauritius Investment and Mansi Share and Stock Broking after they deposited ₹3.68 crore in alleged wrongful gains. The move follows an investigation into alleged market manipulation during the Sensex Closing Auction Session. Despite this restoration, both entities remain prohibited from participating in the closing auction until further notice as regulatory scrutiny continues.
The Securities and Exchange Board of India (SEBI) has permitted Copthall Mauritius Investment and Mansi Share and Stock Broking to resume their general trading activities. This decision follows the two entities' compliance with an interim regulatory order issued in response to allegations of market manipulation during the Sensex Closing Auction Session (CAS) on August 13, 2026.
Deposit of Alleged Gains
To regain access to the broader securities market, the firms were required to deposit the gains SEBI identified as potentially illicit. Copthall Mauritius Investment, a division of JPMorgan, deposited ₹2.96 crore, while Mansi Share and Stock Broking contributed ₹71.64 lakh. The total deposit of ₹3.68 crore was transferred to a dedicated account specified by the regulator, allowing the entities to move forward with their trading operations while the investigation remains active.
Regulatory Scrutiny and CAS Restrictions
The regulatory investigation centers on trading patterns during the Sensex derivatives expiry in mid-August. SEBI examined whether aggressive orders placed within the 15-minute closing auction window—which runs from 3:15 pm to 3:30 pm—were used to artificially influence the equilibrium price of index constituents. The regulator is assessing if these actions were intended to benefit existing derivatives positions held by the firms, potentially distorting the price discovery process at the end of the trading day.
While the regulator has lifted the suspension on general trading, the entities are not yet fully cleared. Both firms remain prohibited from participating in the equity segment's Closing Auction Session until further notice. This specific restriction is significant because the closing auction is a critical window for institutional investors and brokers to execute trades at the final settlement price. For these firms, the inability to participate in this window may impact their end-of-day hedging and portfolio management strategies.
Future Monitorables
The investigation into these entities remains ongoing under SEBI’s Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) regulations. The regulator is currently reviewing formal responses and evidence provided by the firms. A final order will determine whether the alleged wrongful gains are permanently impounded or if further penalties, including more stringent trading bans or financial fines, are warranted. For market participants, the case highlights the regulator's continued focus on monitoring auction-based pricing protocols to ensure market integrity and prevent potential price manipulation.