The Reserve Bank of India (RBI) has lifted the restrictions on JM Financial Products, a subsidiary of JM Financial, that had prevented it from engaging in share and bond funding. These restrictions were in place for over ten months due to regulatory violations and governance issues.
The RBI had ordered JM Financial Products to stop all financing activities involving shares and debentures, including loans for IPO financing. The restrictions were reviewed after the company completed a special audit and addressed the issues to the RBI’s satisfaction.
JM Financial stated that it is dedicated to maintaining high compliance standards and will continue to implement the necessary improvements. The company is a significant non-banking finance company (NBFC) registered with the RBI, with 99.71% ownership by publicly listed JM Financial Ltd. It focuses on capital markets, tailored financing, and real estate.
Previously, the RBI’s ban was prompted by serious issues identified in loans related to IPO financing and subscriptions to non-convertible debentures. As of the third quarter of FY24, JM Financial Products reported a loan book of ₹4,600 crore and assets under management of ₹7,197 crore, according to stock exchange disclosures.
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