JM Financial Stock Shred 4% As Sebi Imposes 2 Yr Ban For Bond Issue Mandates
Sebi confirms an earlier order on Thursday and barred JM Financial from taking on new mandates for bond issues until 31 March 2025
JM Financial stocks shredded nearly 4 per cent in the Friday trading session after the market regulator barred the firm from new mandates for bond issues until 31 March 2025 due to regulatory lapses.
JM Financial stock traded at Rs 84.22 with 3.54 per cent loss in the afternoon session on the National Stock Exchange (NSE).
Securities and Exchange Board of India (Sebi) confirmed an earlier order on Thursday and barred JM Financial from taking on new mandates for bond issues until 31 March 2025.
Thursday's order, which followed an interim one in March this year, gave another blow to the investment brokerage firm, which ranks among the top 15 market makers for private placement of bonds in India so far this financial year, according to Prime Database.
In the interim order, Sebi had directed the brokerage firm to not act as the lead manager of public debt issuances, citing regulatory lapses such as incentivising investors to apply for the public issues.
Sebi said in March it will initiate an investigation into the regulatory lapses for which JM Financial assured full cooperation.
Due to the regulatory strokers, JM Financial stock has declined nearly 15 per cent in 2024 so far.
