Key Points
JM Financial: A day after the Reserve Bank of India (RBI) banned JM Financial Products Ltd (JMFPL) from giving loans against shares and debentures, official sources said that the central bank was concerned about serious irregularities within the company..
Irregularities ranged from Know Your Customer (KYC) violations to anti-money laundering (AML) norms to wide sharing and usage of customer data across its entities, Moneycontrol reported on Wednesday...
An official quoted in the report said that the banking regulator found significant deviations in the loan sanctioning process of the company during its review, following which the step was taken. There are serious violations of KYC and AML guidelines, deviations in the loan sanction process and also sharing and usage of customer data across the group entities, the official told Moneycontrol...
"This action is necessitated due to certain serious deficiencies observed in respect of loans sanctioned by the company for IPO financing as well as NCD subscriptions," RBI said.. JM Financial Products has been allowed to continue to service its existing loan accounts through the usual collection and recovery process...
Earlier on Wednesday, it was reported that after RBI, market regulator Sebi may come out with an order on JM Financial for its alleged role in inflating IPO subscription numbers...
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JM Financial shares plunge 19% after RBI restrictions. Here's what happened
06, Mar, 24Shares of JM Financial plunged 19% after RBI barred JM Financial Products from undertaking business in shares and bonds funding. RBI directed JM Financial to cease and desist from financing against shares and debentures. The stock has been on the downtrend for the fourth straight session.