On October 18, JM Financial Limited announced that the Reserve Bank of India (RBI) has lifted the restrictions on its subsidiary, JM Financial Products Ltd (JMFPL), allowing it to resume financing against shares and debentures.
In an exchange filing, JM Financial stated, “With this communication, the company is permitted to provide, with immediate effect, the financing against shares and debentures in compliance with all applicable laws and regulations.” The firm emphasized its commitment to upholding high compliance standards and ensuring that the remedial measures it has implemented are sustained.
Previously, in March, the RBI had prohibited JMFPL from extending loans against shares and debentures, including those for Initial Public Offerings (IPOs), due to serious deficiencies identified in the firm’s loan processing practices. The RBI cited governance concerns and violations of regulatory guidelines as key reasons for its action.
In a July 22 exclusive interview with Moneycontrol, Vishal Kampani, non-executive vice chairman of JM Financial, indicated that the firm had been cooperating with the regulator and providing necessary data, and expressed optimism about an early resolution to the issues raised.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Readers are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions. The performance of JM Financial Limited and its subsidiaries may be subject to market fluctuations, and past performance is not indicative of future results.
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