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  5. RBI lifts restrictions on JM Financial Products after seven moths on financing against shares, debentures

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RBI lifts restrictions on JM Financial Products after seven moths on financing against shares, debentures

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By Press Trust of India (PTI)

1 min read | Updated on October 19, 2024, 09:50 IST

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SUMMARY

The RBI has lifted restrictions on JM Financial Products Ltd, allowing it to resume financing against shares and debentures. This follows the RBI's earlier ban in March 2024, enabling the subsidiary to comply with all applicable laws and regulations.

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The company is now permitted to provide, with immediate effect, the financing against shares and debentures in compliance with all applicable laws and regulations

The company is now permitted to provide, with immediate effect, the financing against shares and debentures in compliance with all applicable laws and regulations

JM Financial on Friday said the Reserve Bank of India has lifted restrictions imposed on its subsidiary JM Financial Products Ltd with regard to financing against shares and debentures.

"We wish to inform you that the RBI, vide its letter dated October 18, 2024, has lifted the restrictions imposed by it on the company (JM Financial Products Ltd) through its order dated March 5, 2024," JM Financial said in a regulatory filing.

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, it added.

On March 5, the RBI barred JM Financial Products Ltd (JMFPL) from giving loans against shares and debentures, including sanction and disbursal of loans for initial public offering (IPO) of shares with immediate effect.

RBI had said that the action were a consequence "certain serious deficiencies" in loans sanctioned by the company for the IPO financing and non-convertible debentures (NCD) subscriptions.

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Press Trust of India (PTI) is India's premier news agency.

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