India's regulator tightens grip on foreign banks amid market-manipulation probes

The Securities and Exchange Board of India has formally alleged that a Mauritius-registered unit of JPMorgan engaged in manipulative trading, marking the latest in a series of actions against foreign financial firms. This follows SEBI’s high-profile charge against Jane Street last year, which the U.S. firm denied, and recent investigations of Bank of America and Capital Group. Regulators are concentrating on India’s options market, the biggest globally, where firms seek arbitrage and market-making profits.

SEBI chair Tuhin Kanta Pandey has pushed for greater use of technology to monitor sharp or unexplained market swings, promising proportionate rules that protect investors. Domestic broker Mansi Share and Stock Broking is also under investigation, underscoring that no player is exempt. Legal experts note that firms are scrambling to upgrade compliance, with SEBI’s stance that scale and reputation offer no immunity. JPMorgan declined comment, and the order targets only the offshore unit, not its Indian subsidiary.