Sebi Sanctions JM Financial: No Public Debt Issues Until 2025

Markets regulator Sebi has restricted JM Financial Ltd from acting as a lead manager for public issues of debt securities until March 31, 2025, following alleged irregularities. The order conforms to JM Financial's voluntary undertaking, which includes halting new mandates and enhancing compliance measures.

Markets regulator Sebi issued a confirmatory order on Thursday, restraining JM Financial Ltd from acting as a lead manager for public issues of debt securities until March 31, 2025. This move comes in light of alleged irregularities concerning non-convertible debentures (NCDs).

The regulator clarified that this restriction pertains solely to public issues of debt securities and does not impact JMFL's other operations, including equity issues. Reacting to the development, JM Financial said in a filing to stock exchanges that the order aligns with its voluntary undertaking.

The confirmatory order followed an interim directive issued in March, in which Sebi prevented JMFL from accepting new mandates as a lead manager for such public issues. Sebi's preliminary findings suggested that JMFL engaged in irregular practices affecting retail investors and associated companies within the JM Group. The order ensures JMFL will not participate in public debt issues until the investigation concludes.

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