Fintech Brief — August 27, 2026
SEBI Bans JPMorgan Unit from Equity Markets Over Closing Auction Manipulation
SEBI has barred JPMorgan-owned Copthall Mauritius Investment and Mumbai broker Mansi Share and Stock Broking from India’s securities market for allegedly manipulating prices on the newly launched Closing Auction Session (CAS). The alleged violation occurred on August 13 — just six days before SEBI issued its order, a turnaround speed that would have been unthinkable from the regulator historically. For context, the Jane Street ban took over 17 months.
The CAS, launched on August 3, replaced the old volume-weighted average price method with a focused 20-minute auction window to determine official closing prices. SEBI found that Copthall placed large buy orders across all Sensex stocks at prices significantly above prevailing market levels — orders that were not driven by genuine acquisition intent, with some later cancelled. The combined fine for both entities was roughly $384,000.
India’s equity derivatives market, the world’s largest by volume at ~$6 trillion, has been under SEBI’s microscope. The signal here is clear: the regulator is accelerating enforcement, and higher entry barriers for retail traders in the options space may follow.
RBI Absorbs ₹1.41 Trillion Surplus Liquidity via VRRR Auctions
The Reserve Bank of India mopped up ₹1.41 trillion through dual variable rate reverse repo (VRRR) auctions — covering both 7-day and overnight tenors — at a 5.24% cut-off rate. The central bank has since announced a larger ₹1.75 trillion two-day VRRR auction.
Persistent surplus liquidity in the banking system has been a feature through much of 2026, and RBI has been using VRRR operations as its primary tool to manage excess funds without sending hawkish rate signals. The scale of absorption suggests the central bank remains focused on keeping system liquidity in check even as the Monetary Policy Committee holds rates steady.
RediffPay to Exit Closed User Group This Month, Eyes Full UPI Launch
AvenuesAI (formerly Infibeam Avenues) announced that RediffPay, its UPI-based consumer payments platform, will exit its Closed User Group (CUG) testing phase and enter full production this month. Rediff received NPCI’s Third Party Application Provider (TPAP) licence and entered CUG testing in December 2025.
The launch comes at a pivotal moment for UPI MDR economics. The government’s recent amendment to the Payment and Settlement Systems Act effectively removed the zero-MDR protection, though Finance Minister Nirmala Sitharaman has assured that customers and small merchants will not bear fees. MDR is expected to be levied on large merchants and high-value transactions (above ₹2,000, reportedly at 0.3%). AvenuesAI filed a confidential DRHP with SEBI in April for a ₹600–800 crore IPO.
Nexedge Capital Raises $20 Million in Maiden Funding Round
Mumbai-based wealth management startup Nexedge Capital has raised $20 million in its first institutional funding round, led by Mirae Asset Venture Investments and Elev8 Venture Partners. Founded in 2024 by former 360 One WAM joint CEO Anirudha Taparia, the firm already manages ₹23,000 crore ($2.41 billion) for over 1,200 families and employs 175 professionals, including 82 bankers.
The capital will be deployed to strengthen its technology platform, expand its senior banker network, and extend its footprint across India. The fundraise underscores the aggressive hiring and AUM race in India’s ultra-high-net-worth wealth management segment.