JM Financial shares in spotlight after RBI lifts restrictions on co’s non-banking unit
JM Financial will be in focus on Monday after the company on Friday announced that the Reserve Bank of India has lifted the restrictions placed on its subsidiary, JM Financial Products Ltd, that prohibited it from engaging in any business related to funding for shares and bonds due to regulatory violations and governance issues.
«We wish to inform you that the RBI, vide its letter dated October 18, 2024, has lifted the restrictions imposed by it on the company (JM Financial Products Ltd) through its order dated March 5, 2024,» JM Financial said in a regulatory filing.
These restrictions lasted over ten months and were subject to review following a special audit mandated by the RBI, which required rectification of the identified deficiencies to the central bank's satisfaction.
JM Financial stated, «The company is committed to upholding the highest standards of compliance and will ensure that the remediations it has implemented are sustained.»
The RBI had ordered JM Financial Products to cease financing against shares and debentures, including the sanction and disbursal of loans for IPOs and subscriptions to debentures. With the lifting of these restrictions, the company can now resume these activities.
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