India lifts trading ban on JPMorgan unit amid market manipulation probe

India's Securities and Exchange Board (SEBI) has lifted a trading suspension on a JPMorgan Chase & Co subsidiary, permitting the unit to resume operations in the country's capital markets. The decision comes as the regulator maintains an ongoing investigation into allegations of market manipulation involving the financial services group.

The lifting of the ban allows both the JPMorgan subsidiary and the parent company to trade freely in Indian equity and derivatives markets. However, SEBI's investigative division continues to examine the circumstances surrounding the alleged market manipulation charges that initially prompted regulatory action.

The development marks a partial resolution in a case that had restricted the operations of one of the world's largest investment banking firms in India's financial markets. Market participants await further clarity on the scope and timeline of SEBI's continuing investigation.

The regulator's decision to restore trading privileges while maintaining its probe suggests SEBI found insufficient grounds to sustain the operational restrictions, though the underlying investigation into potential market misconduct remains active. The move balances regulatory oversight with operational normalcy for a significant market participant.