Financial services provider and SEBI-registered merchant banker JM Financial Ltd on Friday (January 3) said it has received an administrative warning letter from the Securities and Exchange Board of India (SEBI).
The letter, dated January 1, 2025, pertains to the company’s role in the initial public offering (IPO) of equity shares by its client, Western Carrier (India) Ltd.
“…please note that JM Financial Limited (the “Company”) in its capacity as a SEBI registered Merchant Banker, has received an administrative warning letter dated January 1, 2025 from SEBI in relation to the initial public offering of equity shares by one of its clients,” JM Financial said in a regulatory filing.
The warning was officially communicated to JM Financial on January 2, 2025, at 2.30 pm. The company has clarified that the SEBI action has no financial or operational impact on its activities.
Last year in March, the RBI barred JM Financial Products Ltd from providing any form of financing against shares and debentures, including sanction and disbursal of loans against initial public offering, with immediate effect.
JM Financial Products has been directed to immediately cease and desist from any form of financing against shares and debentures, including sanction and disbursal of loans against IPOs and subscription to debentures.
RBI said the action was necessary due to serious deficiencies observed concerning loans sanctioned by the company for IPO financing and NCD subscriptions. The RBI conducted a limited review of the company’s books based on the information shared by the Securities and Exchange Board of India (SEBI).
However, through a letter dated October 18, 2024, RBI lifted the restrictions on JM Financial Products Ltd. Shares of JM Financial Ltd ended at ₹130.50, down by ₹2.55, or 1.92% on the BSE.
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