Securities and Exchange Board of India has lifted its trading ban on JPMorgan unit Copthall Mauritius Investment and Mumbai broker Mansi Share and Stock Broking after both deposited alleged wrongful gains of ₹3.68 crore. Copthall paid ₹2.96 crore while Mansi deposited ₹71.6 lakh. Despite this relief, Copthall remains barred from participating in the Closing Auction Session until the regulator issues a confirmatory order.
SEBI had imposed the ban on August 19 citing manipulation during the Sensex weekly derivatives expiry on August 13. Investigators alleged that Copthall placed oversized buy orders and Mansi placed large sell orders which were later cancelled. These trades allegedly influenced closing prices and generated wrongful gains.
The Closing Auction Session was introduced on August 3 to determine official closing prices of Sensex stocks. These prices are critical for index calculations, mutual fund net asset values and derivatives settlement. SEBI fears manipulation could distort benchmarks and harm market integrity.
Both firms can now trade in general markets but Copthall remains excluded from CAS. The regulator continues its probe and may impose further penalties depending on findings. Market participants are watching closely as SEBI tightens surveillance to protect fairness and transparency in India’s capital markets.
