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As SEBI prevents the company from serving as lead manager for new debt issues, JM Financials plunges almost 9%

<p>After the Securities and Exchange Board of India (Sebi), the capital market regulator, prohibited JM Financials from serving as a lead manager for any future public offering of debt instruments, the company’s shares fell more than 9% in early trading on Monday.</p>
<p><img decoding=”async” class=”alignnone wp-image-496352″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/03/theindiaprint.com-as-sebi-prevents-the-company-from-serving-as-lead-manager-for-new-debt-issues-jm-f.jpg” alt=”theindiaprint.com as sebi prevents the company from serving as lead manager for new debt issues jm f” width=”981″ height=”735″ title=”As SEBI prevents the company from serving as lead manager for new debt issues, JM Financials plunges almost 9% 15″></p>
<p>JM Financial shares have lost more than 17 percent in the last week after fines from the Reserve Bank of India (RBI) on one of its group firms and the current Sebi ruling. The scrip fell as high as 9.82 percent to Rs 79.30 each on the BSE.</p>
<p>However, JM Financial may continue to serve as the lead manager for the public offering of debt securities for a period of 60 days beyond the date of the decision, according to an interim order issued by SEBI on March 7.</p>
<p>The financial markets regulator said that the examination into this case would be finished in six months and that the order was based on the information that was on file.</p>
<p>The ruling was the result of an examination into the debt issue responsibilities played by JM Financial Products, a non-banking financial organization, its wholly-owned subsidiary, broker JM Financial Services, and parent firm and merchant banker JM Financial.</p>
<p>“Predetermined and pre-meditated manner; and executed clinically to ensure subscription and success” was the approach used in all of the debt offering transactions. The regulator said that this undermined fair-price discovery and market integrity.</p>
<p>The directive was issued only a few days after JM Financial Products was immediately prohibited by the Reserve Bank of India (RBI) from providing loans secured by shares and debentures, including the approval and disbursement of loans secured by initial public offerings (IPOs).</p>
<p>The RBI announced the judgment on March 5 and said that it was made in response to finding certain significant flaws in the loan application procedure used by the financial services company. In addition to regulatory rules being broken, the banking regulator expressed grave concerns about the company’s governance practices.</p>

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