Risky Business: JM Financial's Regulatory Troubles

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RBI has directed JM Financial Products Limited to cease all financing activities related to shares & debentures. This includes loans against initial public offerings (IPOs) & subscription to debentures, following deficiencies in loan sanctions.

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RBI's directive to JM Financial comes after deficiencies were found in loans sanctioned for IPO financing & Non-Convertible Debenture (NCD) subscriptions. company facilitated group of customers in bidding for various IPOs & NCD offerings using borrowed funds, raising regulatory concerns.

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[{"selector":"#anim-725df4c2-a172-4ab4-aef9-aebe68c3ab91","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] RBI's directive to JM Financial follows its decision to halt IIFL Finance's gold loan operations. Concerns regarding deviations in gold purity & weight certification prompted regulatory action, showcasing RBI's commitment to enforcing stringent measures across financial institutions to safeguard investor interests. RBI's Stringent Measures Across Financial Institutions

[{"selector":"#anim-e796b8a2-c073-4490-9ed4-a99eacd4199b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] JM Financial's dual role as both lender & borrower, facilitated through Power of Attorney (POA) arrangements, raised serious regulatory concerns. Operating bank accounts using PO breached regulatory guidelines, posing governance issues detrimental to customer interests. Dual Role of JM Financial Raises Concerns

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Risky Business: JM Financial's Regulatory Troubles

Published : 06 March 2024

RBI has directed JM Financial Products Limited to cease all financing activities related to shares & debentures. This includes loans against initial public offerings (IPOs) & subscription to debentures, following deficiencies in loan sanctions.

RBI's directive to JM Financial comes after deficiencies were found in loans sanctioned for IPO financing & Non-Convertible Debenture (NCD) subscriptions. company facilitated group of customers in bidding for various IPOs & NCD offerings using borrowed funds, raising regulatory concerns.

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