JM Financial Stock Plummets Over 19% Amid RBI Restrictions
- ByStartupStory | March 6, 2024
Shares of JM Financial plummeted over 19% after the Reserve Bank of India imposed restrictions on group firm JM Financial Products Ltd, citing various manipulations. The stock fell to Rs 77.10 on the BSE and Rs 77.55 on the NSE, with the company’s market capitalization declining by Rs 1,484.53 crore to Rs 7,643.63 crore.
The RBI restricted JM Financial Products Ltd from providing any financing against shares and debentures, including loans against IPOs and subscription to debentures, citing systemic importance.
The central bank barred the NBFC from sanctioning and disbursing such loans with immediate effect. The RBI is investigating possible regulatory violations and deficiencies by the banks involved. JM Financial Products can service existing loan accounts but must cease financing activities immediately.
The RBI’s actions were prompted by serious deficiencies observed in loans sanctioned for IPO financing and NCD subscriptions, according to a statement by the central bank. JM Financial Products offers a range of loan products across various verticals, including capital market financing and retail mortgage financing.
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