(Reuters) – JM Financial announced that the Reserve Bank of India has lifted the ban on its unit, allowing it to resume financing activities related to shares and debentures and provide loans for IPO subscriptions.
In March, the central bank prohibited JM Financial Products from offering loans against shares due to regulatory issues.
The financial services group stated that its non-banking unit can now offer these loans immediately.
The Reserve Bank has been closely monitoring compliance among banks and non-bank financial institutions recently.
Additionally, four non-banking finance companies are being reviewed due to concerns about their loan pricing practices.
Earlier this year, the Securities and Exchange Board of India prevented JM Financial from taking new bond assignments until March 2025 due to a preliminary investigation.
JM Financial offers short-term loans for IPO subscriptions through its non-bank business but did not comment on the situation when contacted by Reuters.
(Reporting by Indranil Sarkar in Bengaluru; Editing by Tasim Zahid)
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