Indian regulator bars JM Financial from managing new bond issuances (updated)

JM Financial

07/03/2024 12:33

(Adds details from paragraph 3 onwards)
       BENGALURU, March 7 (Reuters) - India's markets regulator
on Thursday barred JM Financial  JMSH.NS  from taking new
mandates to act as manager for bond issuances, it said in an
interim order. 
    JM Financial can, however, act as lead manager for public
issues of debt for another 60 days, the Securities and Exchange
Board of India (SEBI) said.
    SEBI’s action followed a preliminary investigation into JM
Financial and its non bank finance company while managing public
issues of debt. 
        SEBI, in its order, said JM Financial provided funds to
individual investors to invest in public debt issues while
simultaneously assuring them of an exit at a profit on the
listing day. 
  
        JM Financial, together with connected entities “were
found to have given an assured exit to certain investors at a
profit thereby incentivising them to apply in the public issue
in contravention of regulatory mandates,” SEBI said in its
order.
  
        JM Financial did not immediately respond to Reuters
request for comment.
  

 (Reporting by Sethuraman NR in Bengaluru and Jayshree P
Upadhyay; Editing by Mrigank Dhaniwala and Chizu Nomiyama)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))