The Securities and Exchange Board of India (Sebi) has prohibited JM Financial, a non-banking financial company (NBFC), from accepting new mandates as a lead manager for debt securities’ public issues. Sebi’s action follows severe irregularities discovered during an examination of JM Financial’s conduct in initial public offerings (IPO) and debt markets. JM Financial’s subsidiaries were found involved in discrepancies and inter-group transactions, including providing an assured exit to certain investors at a profit. Loans extended by JM Financial Products, a subsidiary, were disproportionate to investors’ declared income, indicating potential unfair trade practices. Sebi’s order mandates JM Financial to address objections within 21 days and complete the probe within six months.
Sebi Bars JM Financial from Lead Manager Role Due to Irregularities
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