(Reuters) – JM Financial announced that the Reserve Bank of India has lifted the ban on its unit, allowing it to restart financing for shares and debentures, including loans for IPO subscriptions.
The central bank had previously prohibited JM Financial Products from issuing loans because of regulatory issues.
The unit can now offer loans against shares and debentures immediately, as stated by JM Financial.
Recently, the RBI has been focusing on ensuring regulatory compliance among banks and non-bank financial institutions.
This latest move involves scrutiny of four non-bank finance companies regarding their loan pricing practices.
Separately, the Securities and Exchange Board of India had earlier barred JM Financial from taking on new bond issues until March 2025 due to an ongoing investigation into the company.
JM Financial, which provides short-term unsecured loans for IPO subscriptions, has not yet commented on this news.
(Reporting by Indranil Sarkar in Bengaluru; Editing by Tasim Zahid)
