JM Financial Says RBI Removes Business Restrictions On Key Subsidiary
The central bank in March ordered JM Financial Products to stop doing financing against shares and debentures after finding serious deficiencies
(The Corner Office Journal) -- JM Financial Ltd. said the Reserve Bank of India (RBI) removed the restrictions imposed on the company’s material subsidiary JM Financial Products Ltd. related to financing against shares and debentures.
The RBI informed about its decision via a letter dated 18 October, JM Financial said in a stock exchange announcement.
“With this communication, the company is permitted to provide, with immediate effect, the financing against shares and debentures in compliance with all applicable law and regulations,” JM Financial Products said.
On 5 March, the RBI directed JM Financial Products to stop doing financing against shares and debentures after finding serious deficiencies.
The central bank’s order barred the non-bank lender from doing any form of financing against shares and debentures, including sanction and disbursal of loans against initial public offering of shares and subscription to debentures.
The RBI had said the imposed business restrictions will be reviewed upon the completion of a special audit to be instituted by the central bank and after rectification of the deficiencies to its satisfaction.
JM Financial offers a broad suite of loan products, which are customized to suit the needs of the corporates, SMEs and individuals, according to its website. The company broadly operates under five verticals, namely capital market financing, retail mortgage financing, bespoke financing, financial institution financing and real estate financing.
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