JPMorgan's (JPM) Copthall Mauritius Investment subsidiary will argue that alleged violations flagged by India's market regulator were technical rather than manipulative, Bloomberg reported Monday, citing people familiar with the matter.

The unit, which was barred last week from India's capital markets over alleged manipulation of the country's new closing auction mechanism, plans to seek clarifications from the Securities and Exchange Board of India but is unlikely to appeal for now, sources told Bloomberg.

The US bank is weighing an internal compliance review to identify any gaps, according to the report.

JPMorgan did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)