BAJAJ BROKING
SEBI extends restrictions on JM Financial, prohibiting the firm from acting as a lead manager for public debt issues until March 31, 2025. JM Financial discontinues IPO financing and resolves to settle with SEBI amid allegations of incentivizing retail investors.
The Securities and Exchange Board of India (SEBI) has extended its restrictions on JM Financial, prohibiting the firm from acting as a lead manager for public debt issues until March 31, 2025. This follows an earlier interim order from March 7, which JM Financial did not contest.
JM Financial has committed to completely discontinuing its subsidiary, JM Financial Products' initial public offering (IPO) financing business. Although the Reserve Bank of India (RBI) initially directed a temporary halt pending a special audit, JM Financial Products' Board decided to voluntarily end this business activity permanently.
JM Financial has expressed a strong desire to resolve the matter with SEBI through a settlement mechanism. They clarified in a stock exchange notification that the current restrictions apply solely to their role in managing public debt issues and do not affect other company activities, such as managing public equity issues.
Explore: Jm Financial Limited Share Price
The case stems from SEBI's investigation into public issues of non-convertible debentures (NCDs) in the previous year. During this probe, SEBI found that JM Financial, as a lead manager, allotted a significant portion of NCDs to retail shareholders. Notably, many retail investors sold their securities on the listing day.
SEBI's analysis revealed that JM Financial Products, a non-banking financial company (NBFC) within the JM Group, was the counterparty to these trades. JM Financial Products reportedly sold the securities purchased from retail investors at a loss on the same day.
Additionally, SEBI noted that many retail applications were processed through JM Financial Services, the firm's broking arm, and funded by JM Financial Products.
SEBI further alleged that JM Financial Products held the power of attorney to operate the accounts of funded investors. This arrangement led SEBI to suspect that JM Financial entities were incentivizing certain investors to apply for securities in issues managed by JM Financial.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Share Market Today | Gift Nifty Signals 100-Point Gap Down, Nifty to Consolidate
06 Sep, 2024 | 4 Min. read
KEC International Secures ₹1,423 Cr Transmission Line Order in Saudi Arabia
06 Sep, 2024 | 1 Min. read
Ashoka Buildcon’s Viva Highways Monetises Pune Land for ₹453 Crore
06 Sep, 2024 | 2 Min. read
Peak Partners To Sell 11% Stake in Indigo Paints via Block Deal
06 Sep, 2024 | 2 Min. read
US Initial Jobless Claims Drop to 227,000 in August.
06 Sep, 2024 | 1 Min. read
Commodities Market Today | WTI Crude Steady at $69.18, Gold Rises 0.8% to $2,546
06 Sep, 2024 | 1 Min. read
Gold Rate Today | Gold Rises 0.8% to $2,546, Silver Gains 2% to $29.14
06 Sep, 2024 | 2 Min. read
Vodafone Idea Share Price Falls 11% After Goldman Sachs Report
06 Sep, 2024 | 1 Min. read
Suzlon Energy Share Price Rises After Corporate Office Sale
06 Sep, 2024 | 1 Min. read
Why is the Stock Market Down Today? Key Factors Explained
06 Sep, 2024 | 1 Min. read
Sona BLW Precision Forgings Plans ₹2,400 Crore QIP at ₹675-700 per Share
05 Sep, 2024 | 1 Min. read
Commodities Market Today | Crude Oil Drops, Brent Hits Low; Gold and Silver Rise
05 Sep, 2024 | 1 Min. read
Analysis to Become a Pro Investor
28 Dec, 2023 | 4 Min. read
Women In Real Estate Investing (Investree)
28 Dec, 2023 | 5 Min. read
How To Check Prudent Corporate Advisory IPO Allotment Status
27 Dec, 2023 | 3 Min. read
How To Boost Credit Score? – Steps to Improve Creditworthiness
27 Dec, 2023 | 4 Min. read
Advantages and Disadvantages of Opening Multiple Demat Accounts
26 Dec, 2023 | 4 Min. read
7th CPC LTC: Leave Travel Concession Rules for Central Government Employees
26 Dec, 2023 | 4 Min. read
7th Pay Commission: House Building Advance (HBA) Interest Rate FY 2023-24
26 Dec, 2023 | 5 Min. read
The Future of Trading: Exploring Bajaj Broking’s Demat Features
26 Dec, 2023 | 6 Min. read
7th Central Pay Commission Cpc Fitment Table
23 Dec, 2023 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading