India's securities regulator issued an interim order against a JPMorgan Chase & Co. unit in record time, a move market watchers say could deter attempts to manipulate the country's new closing stock auction.

The Securities and Exchange Board of India order banning Copthall Mauritius Investment Ltd. and local brokerage firm Mansi Share and Stock Broking Ltd. from the capital market within six days of the alleged manipulative trading on Aug. 13 marks a departure from the past, when the regulator often took years to issue such rulings.

The swift action signals a tougher stance by SEBI on market manipulation, particularly in the newly introduced closing auction session. Market participants view the speed of the order as a warning to traders that the regulator will act decisively against abusive practices.

Analysts say the case could set a precedent for faster enforcement, potentially boosting confidence in India's equity markets. The order also highlights increased scrutiny of foreign portfolio investors and local brokers involved in suspicious trading patterns.