Mumbai: The Securities and Exchange Board of India (Sebi) has lifted the ban on Copthall Mauritius Investment , a JPMorgan unit , and Mansi Share and Stock Broking after they deposited the alleged unlawful gains last month related to trades in the closing auction session(CAS) on the BSE on August 13, in a bank account to comply with the regulator's order, said a people familiar with the development.
However, the ban on participation in CAS stays, they said. Copthall Mauritius Investment deposited ₹2.9 crore, while Mansi Share and Stock Broking deposited ₹71.6 lakh.
"The bank accounts of noticees no.1 (Copthall Mauritius Investment) and 2 (Mansi Share and Stock Broking) are impounded...and they are directed to open fixed deposit accounts in their names so as to credit or deposit the...impounding amount...with a lien marked in favour of SEBI and the amount kept therein shall not be released without permission from SEBI," Sebi said in its order last month. A person familiar with the development said that ban on other segments got automatically lifted on depositing the disgorged amount.
An email query sent to JP Morgan and Sebi didn't elicit any response. Mansi Share couldn't be reached for a comment.
Although the regulator has allowed both entities to trade in the local markets, its investigation into the alleged market manipulation would continue. Sebi had directed both the entities to deposit the alleged illegal gains after its investigation found that they manipulated the Sensex on the August 13 expiry day to benefit from their derivatives positions.
The regulator had said its surveillance system detected sharp and unusual movements in the Sensex during the CAS, which was introduced from August 3 to improve price discovery and transparency.