India's JM Financial says no deficiencies in unit's loan sanctioning after c.bank action

JM Financial

06/03/2024 03:29

BENGALURU, March 6 (Reuters) - Indian investment banking
firm JM Financial  JMSH.NS  on Wednesday said there were no
deficiencies in the loan sanctioning process of its unit, a day
after the Reserve Bank of India (RBI) barred the latter from
giving out loans against shares and debentures.
    "We strongly believe that there have been no material
deficiencies in our loan sanctioning process. Further, the
company has not violated applicable regulations," a spokesperson
said in a statement on the RBI's action against JM Financial
Products.
    "We also wish to reaffirm that there have been no governance
issues whatsoever and we conduct all our business and
operational affairs in a bonafide manner."
    India's central bank on Tuesday cited regulatory violations
and governance concerns as reasons for its action against JM
Financial Products.
    The RBI reviewed the company's books, which showed it had
repeatedly helped a group of its customers to bid for various
IPO and non-convertible debenture offerings by using loaned
funds.
    The RBI has stepped up oversight of banks and non-bank
finance companies over the last few years to ensure compliance
of its norms and protect customer interest.
    The central bank on Monday ordered non-bank finance company
IIFL Finance  IIFL.NS  to stop giving out gold loans, citing
"material supervisory concerns" in its gold loan portfolio,
sending its shares down 20% on Tuesday.
    

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia
Cheema)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))