SEBI Extends Restrictions On JM Financial Managing Public Debt Issues Until March 2025

Markets regulator Securities and Exchange Board of India said on Thursday that JM Financial Ltd. will continue to face restrictions on acting as lead manager for public debt issues until March 31, 2025. This confirmatory order follows earlier limitations imposed on the firm, stemming from an interim order issued on March 7, which JM Financial did not contest.

SEBI further said that JM Financial has submitted an undertaking, agreeing that its subsidiary—JM Financial Products—will completely discontinue its IPO financing business.

The initial order from March 7 barred JM Financial from taking new mandates as a lead manager for public issues of debt securities. SEBI's investigation revealed a scheme to manipulate the subscription and success of a public issue, with a significant number of individual investors selling their allotted securities on the day of listing. This led to SEBI's decision to maintain the restrictions.

Shares of JM Financial closed more than 6% higher at Rs 87.48 apiece on Thursday, as compared with a 0.2% gains in the benchmark NSE Nifty 50.