(Reuters) – JM Financial announced that the Reserve Bank of India has lifted the ban on one of its units, allowing it to start financing shares and debentures again, including loans for IPO subscriptions.
This ban was imposed in March due to regulatory issues and governance concerns.
JM Financial’s non-banking unit can now offer loans against shares and debentures immediately, as confirmed in a statement from the company.
Recently, the central bank has increased its oversight of banks and non-bank financial institutions to ensure compliance.
This action follows scrutiny of four non-banking finance companies over their loan pricing practices.
Additionally, the Securities and Exchange Board of India had previously prohibited JM Financial from taking on new bond issues until March 2025 amid an ongoing investigation.
JM Financial provides short-term, uncollateralized loans for IPO subscriptions through JM Financial Products but has not yet commented on this update.
(Reporting by Indranil Sarkar in Bengaluru; Editing by Tasim Zahid)
