JM Group Resolves Allegations with Sebi Over NCD Public Issue Irregularities

JM Group entities have resolved issues with Sebi related to alleged mismanagement in a public issue of non-convertible debentures (NCDs) by paying a settlement amount. They have also agreed to temporary restrictions on certain financial activities. This follows allegations of unfair trade practices providing guaranteed profits to certain investors.

In a significant development, JM Group entities, including JM Financial, JM Financial Services, and JM Financial Products, have settled accusations with market regulator Sebi concerning irregularities in managing a public issue of non-convertible debentures (NCDs) by Piramal Enterprises. The settlement involved a payment of Rs 3.92 crore.

In addition to the settlement, JM Financial Ltd and JM Financial Services Ltd disgorged illegal gains of Rs 1.22 crore and Rs 1.33 crore respectively. As part of the resolution, JM Financial has accepted a three-month voluntary debarment from managing public issues of debt securities, and other group entities faced similar temporary restrictions in related activities.

The accusations stem from alleged unfair practices, where JM Financial's entities orchestrated a scheme ensuring guaranteed exits at profits for certain investors. Following this resolution, Sebi declared proceedings settled without admitting or denying any wrongdoing from the entities involved, highlighting the complexity of the case.

(With inputs from agencies.)