MUMBAI: Markets regulator Sebi has confirmed interim directions against JM Financial following irregularities in a public issue of non-convertible debentures (NCDs) where it was a lead manager. The interim directions bar JM Financial from acting as a lead manager for any public issue of debt securities till March 31, 2025.
During its probe, Sebi found that a significant portion of one public debt issue was allotted to retail shareholders, many of whom exited on the listing day itself. Trading data showed that JM Financial Products (JMFPL) was the counterparty to these trades. JMFPL sold the securities purchased from retail investors at a loss on the same day.
Sebi noted that JM group entities were incentivising certain investors to apply for securities. Furthermore, RBI had earlier barred JM Financial from IPO financing following irregularities.
Noting that RBI has barred JM Financial from IPO financing, SEBI said, “Given the same, there is a need to continue the directions issued vide the interim order, which is also part of the voluntary undertaking submitted by the noticee, till the completion of the investigation in the matter”.
