Sebi bars JM Financial from acting as lead manager for public debt issue

Market regulator Securities and Exchange Board of India (Sebi) has barred JM Financial from taking any new mandate for acting as a lead manager for any public issue of debt securities.

"Securities and Exchange Board of India (the “SEBI”) has issued an Interim Ex Parte Order (the “Order”) on March 7, 2024 barring the Company from taking any new mandate for acting as a lead manager for any public issue of debt securities," the company said in a stock exchange filing.

The order added that the company can continue to act as a lead manager for public issue of debt securities with respect to the existing mandates for a period of 60 days from the date of the said order.

Earlier this week, JM Financial’s subsidiary - JM Financial Products was barred by the Reserve Bank of India from extending loans against shares and debentures following which its shares dropped as much as 19 per cent.

The RBI's action restricted JM Financial Products from offering loans against initial public offerings (IPOs) and subscription to debentures. However, the company was permitted to manage existing loan accounts through regular collection and recovery procedures.

JM Financial shares ended 3.12 per cent higher at Rs 87.94 on Thursday.