JM Financial Products: RBI lifts equity and bond financing restrictions on JM Financial Products

The Reserve Bank of India (driven) lifted the restrictions imposed on JM Financial Productsa subsidiary of JM Financial.

Previously, the central bank had prohibited JM Financial Products from carrying out any type of stock and bond financing business due to regulatory violations and governance fails.

Restrictions that lasted more than ten months were to be reviewed after completion of a special audit to be instituted by the RBI and after rectification of the deficiencies to the satisfaction of the central bank.

“The company is committed to maintaining the highest standards of compliance and will continue to ensure that the remediations it carries out are sustained,” JM Financial said.

The RBI had directed JM Financial Products to cease and desist from carrying out any form of equity and debenture financing, including sanctioning and disbursement of loans against initial public offering of shares as well as against subscription of debentures. But now that has been lifted.


JM Financial Products is a systemically important company non-banking financial company registered with RBI and 99.71% owned by a listed stock exchange JM Financiera Ltda. It focuses on capital market, custom and real estate financing. The RBI had earlier said that the ban on NBFC was necessary due to certain serious deficiencies observed in the loans sanctioned by IPO financing and as subscriptions to non-convertible debentures. The company has a loan portfolio of Rs 4,600 crore and assets under management of Rs 7,197 crore as of the end of Q3FY24, according to stock exchange disclosures.

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