JM Financial
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-- Source link: https://tinyurl.com/4syar5ww
-- Note: Reuters has not verified this story and does not vouch for its accuracy
-- Source link: https://tinyurl.com/4syar5ww
-- Note: Reuters has not verified this story and does not vouch for its accuracy
-- Source link: https://tinyurl.com/3bd4mymn
-- Note: Reuters has not verified this story and does not vouch for its accuracy
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-- Note: Reuters has not verified this story and does not vouch for its accuracy
Updates to closing levels
** Shares of India's Reliance Industries RELI.NS closes up 3% at 1,386 rupees, snapping three-day losing run
** RELI records best day in over a month
** RELI lost nearly 4.5% in the last three sessions amid broad-based selling over Middle East war
** Brokerage JM Financial ("Buy", PT at 1730 rupees) says the recent correction in RELI's stock price is overdone
** Says RELI could see near-term benefits due to a jump in diesel crack on account of supply disruption risk and likely rise in petchem margin
** Adds spike in crude/LNG prices doesn't hit the co's O2C (oil-to-chemicals) business
** RELI rated "buy" on average by 34 analysts; median PT at 1,702 rupees - data compiled by LSEG
** YTD, RELI down ~12%
(Reporting by Komal Salecha in Bengaluru)
Updates to closing levels
** Shares of India's Reliance Industries RELI.NS closes up 3% at 1,386 rupees, snapping three-day losing run
** RELI records best day in over a month
** RELI lost nearly 4.5% in the last three sessions amid broad-based selling over Middle East war
** Brokerage JM Financial ("Buy", PT at 1730 rupees) says the recent correction in RELI's stock price is overdone
** Says RELI could see near-term benefits due to a jump in diesel crack on account of supply disruption risk and likely rise in petchem margin
** Adds spike in crude/LNG prices doesn't hit the co's O2C (oil-to-chemicals) business
** RELI rated "buy" on average by 34 analysts; median PT at 1,702 rupees - data compiled by LSEG
** YTD, RELI down ~12%
(Reporting by Komal Salecha in Bengaluru)
Feb 5 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL DEC-QUARTER CONSOL NET PROFIT 3.13 BILLION RUPEES
JM FINANCIAL LTD DEC-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 9.99 BILLION RUPEES
Source text: [ID:]
Further company coverage: JMSH.NS
(([email protected];;))
Feb 5 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL DEC-QUARTER CONSOL NET PROFIT 3.13 BILLION RUPEES
JM FINANCIAL LTD DEC-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 9.99 BILLION RUPEES
Source text: [ID:]
Further company coverage: JMSH.NS
(([email protected];;))
By Shubham Batra
NEW DELHI, Feb 3 (Reuters) - India's trade deal with the U.S. will improve the outlook for domestic equities over the next 12 to 18 months, providing a boost to manufacturing and export-oriented stocks, JM Financial Asset Management said on Tuesday.
President Donald Trump on Monday announced a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.
"India's competitive advantage is enhanced," JM Financial Asset Management's chief investment officer, Satish Ramanathan, told the Reuters Trading India forum. "With lowest tariffs, wider access to markets, and lowest cost of labour, this is a turning point."
Ramanathan's firm, which manages 100 billion rupees ($1.11 billion) in equities, plans to increase its exposure to India's small- and mid-cap stocks, particularly to tap opportunities among firms that could integrate more deeply into U.S.-linked supply chains.
From a valuation perspective, Ramanathan said large-cap stocks remain attractive, though their growth outlook was relatively more moderate.
According to brokerage Motilal Oswal Financial Services, the Nifty 50 .NSEI index is trading at a 12-month forward price-to-earnings ratio of 21.2 times, slightly above its long-period average of 20.8 times, resulting in a modest 2% premium.
In contrast, select mid- and small-cap companies could deliver stronger earnings momentum if export demand strengthens and domestic manufacturing activity accelerates, Ramanathan said.
"We need to have a better balance in exposure to SMIDs (small- and mid-cap) to capture this potential," he said.
Ramanathan said that companies were reporting improved profitability despite being hit by higher wage-related costs over several quarters. With the earnings season still going on, he did not give a detailed sectoral outlook.
India's medium-term fundamentals are intact, and investors should not become "too bearish" despite near-term uncertainties, Ramanathan said, cautioning that potential spikes in bond yields, currency volatility and shifts in U.S. interest rate expectations could impact foreign portfolio flows to India.
($1 = 90.0612 Indian rupees)
(Join Trading India on LSEG Messenger for live interviews: https://lseg.group/3KFHrhe)
(Reporting by Shubham Batra in New Delhi; Editing by Divya Chowdhury and Mrigank Dhaniwala)
(([email protected];))
By Shubham Batra
NEW DELHI, Feb 3 (Reuters) - India's trade deal with the U.S. will improve the outlook for domestic equities over the next 12 to 18 months, providing a boost to manufacturing and export-oriented stocks, JM Financial Asset Management said on Tuesday.
President Donald Trump on Monday announced a trade deal with India that slashes U.S. tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and lowering trade barriers.
"India's competitive advantage is enhanced," JM Financial Asset Management's chief investment officer, Satish Ramanathan, told the Reuters Trading India forum. "With lowest tariffs, wider access to markets, and lowest cost of labour, this is a turning point."
Ramanathan's firm, which manages 100 billion rupees ($1.11 billion) in equities, plans to increase its exposure to India's small- and mid-cap stocks, particularly to tap opportunities among firms that could integrate more deeply into U.S.-linked supply chains.
From a valuation perspective, Ramanathan said large-cap stocks remain attractive, though their growth outlook was relatively more moderate.
According to brokerage Motilal Oswal Financial Services, the Nifty 50 .NSEI index is trading at a 12-month forward price-to-earnings ratio of 21.2 times, slightly above its long-period average of 20.8 times, resulting in a modest 2% premium.
In contrast, select mid- and small-cap companies could deliver stronger earnings momentum if export demand strengthens and domestic manufacturing activity accelerates, Ramanathan said.
"We need to have a better balance in exposure to SMIDs (small- and mid-cap) to capture this potential," he said.
Ramanathan said that companies were reporting improved profitability despite being hit by higher wage-related costs over several quarters. With the earnings season still going on, he did not give a detailed sectoral outlook.
India's medium-term fundamentals are intact, and investors should not become "too bearish" despite near-term uncertainties, Ramanathan said, cautioning that potential spikes in bond yields, currency volatility and shifts in U.S. interest rate expectations could impact foreign portfolio flows to India.
($1 = 90.0612 Indian rupees)
(Join Trading India on LSEG Messenger for live interviews: https://lseg.group/3KFHrhe)
(Reporting by Shubham Batra in New Delhi; Editing by Divya Chowdhury and Mrigank Dhaniwala)
(([email protected];))
** Shares of cable & wire makers KEI Industries KEIN.NS, Polycab India POLC.NS, and R R Kabel RRKA.NS rise between 4% to 1%
** JM Financial expects exports to be a key growth driver for Indian C&W players, citing improved global positioning and China+1 tailwinds
** Brokerage says organised players to gain share amid rising capex, regulatory tightening, and competitive intensity
** JM forecasts sector to grow at 12% CAGR to 1,253 billion rupees ($14.60 billion) by FY28 from ~900 billion rupees in FY25
** Adds new entrants like UltraTech likely to impact smaller, unorganised players more than market leaders
** Initiates coverage on Polycab (BUY, PT 7,900 rupees), KEI (BUY, PT 4,500 rupees); reinitiates coverage on RR Kabel (BUY, PT 1,640 rupees)
** YTD, KEI Industries, Polycab India and R R Kabel down 12.5%, 4.6% and 4% respectively
($1 = 85.8100 Indian rupees)
(Reporting by Rudra Pratap Singh in Bengaluru)
** Shares of cable & wire makers KEI Industries KEIN.NS, Polycab India POLC.NS, and R R Kabel RRKA.NS rise between 4% to 1%
** JM Financial expects exports to be a key growth driver for Indian C&W players, citing improved global positioning and China+1 tailwinds
** Brokerage says organised players to gain share amid rising capex, regulatory tightening, and competitive intensity
** JM forecasts sector to grow at 12% CAGR to 1,253 billion rupees ($14.60 billion) by FY28 from ~900 billion rupees in FY25
** Adds new entrants like UltraTech likely to impact smaller, unorganised players more than market leaders
** Initiates coverage on Polycab (BUY, PT 7,900 rupees), KEI (BUY, PT 4,500 rupees); reinitiates coverage on RR Kabel (BUY, PT 1,640 rupees)
** YTD, KEI Industries, Polycab India and R R Kabel down 12.5%, 4.6% and 4% respectively
($1 = 85.8100 Indian rupees)
(Reporting by Rudra Pratap Singh in Bengaluru)
MUMBAI, July 2 (Reuters) - India's JM Financial Credit Solutions has accepted bids worth an aggregate of 6.50 billion rupees ($75.84 million) for bonds maturing in two years and 11 months, and in three years, three merchant bankers said on Wednesday.
The company will pay an annual coupon of 8.50% on each issue, and had invited commitment bids from bankers and investors earlier in the day, they said.
It did not reply to a Reuters email for comment.
Here is the list of deals reported so far on July 2:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
JM Financial Credit Solutions | 2 year and 11 months | 8.50 | 3 | July 2 | AA (Icra) |
JM Financial Credit Solutions | 3 years | 8.50 | 3.50 | July 2 | AA (Icra) |
* Size includes base plus greenshoe for some issues
($1 = 85.7100 Indian rupees)
(Reporting by Dharamraj Dhutia)
MUMBAI, July 2 (Reuters) - India's JM Financial Credit Solutions has accepted bids worth an aggregate of 6.50 billion rupees ($75.84 million) for bonds maturing in two years and 11 months, and in three years, three merchant bankers said on Wednesday.
The company will pay an annual coupon of 8.50% on each issue, and had invited commitment bids from bankers and investors earlier in the day, they said.
It did not reply to a Reuters email for comment.
Here is the list of deals reported so far on July 2:
Issuer | Tenure | Coupon (in %) | Issue size (in bln rupees)* | Bidding date | Rating |
JM Financial Credit Solutions | 2 year and 11 months | 8.50 | 3 | July 2 | AA (Icra) |
JM Financial Credit Solutions | 3 years | 8.50 | 3.50 | July 2 | AA (Icra) |
* Size includes base plus greenshoe for some issues
($1 = 85.7100 Indian rupees)
(Reporting by Dharamraj Dhutia)
July 1 (Reuters) - JM Financial Ltd JMSH.NS:
COMPLETES ACQUISITION OF 2.98% EQUITY IN JM FINANCIAL CREDIT SOLUTIONS
Source text: ID:nNSE2fWWhs
Further company coverage: JMSH.NS
(([email protected];;))
July 1 (Reuters) - JM Financial Ltd JMSH.NS:
COMPLETES ACQUISITION OF 2.98% EQUITY IN JM FINANCIAL CREDIT SOLUTIONS
Source text: ID:nNSE2fWWhs
Further company coverage: JMSH.NS
(([email protected];;))
May 12 (Reuters) - JM Financial Ltd JMSH.NS:
DIVIDEND 2.7 RUPEES PER SHARE
MARCH-QUARTER CONSOL NET PROFIT 2.1 BILLION RUPEES
MARCH-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 10.04 BILLION RUPEES
Source text: ID:nBSE6xj3t6
Further company coverage: JMSH.NS
(([email protected];;))
May 12 (Reuters) - JM Financial Ltd JMSH.NS:
DIVIDEND 2.7 RUPEES PER SHARE
MARCH-QUARTER CONSOL NET PROFIT 2.1 BILLION RUPEES
MARCH-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 10.04 BILLION RUPEES
Source text: ID:nBSE6xj3t6
Further company coverage: JMSH.NS
(([email protected];;))
March 17 (Reuters) - JM Financial Ltd JMSH.NS:
APPROVES BUSINESS TRANSFER AGREEMENT WITH JM FINANCIAL SERVICES
AGREEMENT FOR TRANSFER OF PRIVATE WEALTH BUSINESS OF CO
CONSIDERATION FOR SALE 110.8 MILLION RUPEES
BUSINESS TRANSFER EFFECTIVE FROM APRIL 1, 2025
Source text: ID:nBSE1QQG1Y
Further company coverage: JMSH.NS
(([email protected];;))
March 17 (Reuters) - JM Financial Ltd JMSH.NS:
APPROVES BUSINESS TRANSFER AGREEMENT WITH JM FINANCIAL SERVICES
AGREEMENT FOR TRANSFER OF PRIVATE WEALTH BUSINESS OF CO
CONSIDERATION FOR SALE 110.8 MILLION RUPEES
BUSINESS TRANSFER EFFECTIVE FROM APRIL 1, 2025
Source text: ID:nBSE1QQG1Y
Further company coverage: JMSH.NS
(([email protected];;))
** Shares of JM Financial JMSH.NS climb as much as 5.5% to 108.61 rupees; last up 2.9%
** Financial services firm will receive income tax refund of 2.3 billion rupees ($27 million)
** Stock up ~8% so far this week, on track to log biggest weekly gain since late-September
($1 = 86.5525 Indian rupees)
(Reporting by Manvi Pant in Bengaluru)
(([email protected]; +918447554364;))
** Shares of JM Financial JMSH.NS climb as much as 5.5% to 108.61 rupees; last up 2.9%
** Financial services firm will receive income tax refund of 2.3 billion rupees ($27 million)
** Stock up ~8% so far this week, on track to log biggest weekly gain since late-September
($1 = 86.5525 Indian rupees)
(Reporting by Manvi Pant in Bengaluru)
(([email protected]; +918447554364;))
Feb 20 (Reuters) - JM Financial Ltd JMSH.NS:
GETS TAX DEPARTMENT ORDER FOR REFUND OF 2.30 BILLION RUPEES
Source text: ID:nNSE9CS35C
Further company coverage: JMSH.NS
(([email protected];;))
Feb 20 (Reuters) - JM Financial Ltd JMSH.NS:
GETS TAX DEPARTMENT ORDER FOR REFUND OF 2.30 BILLION RUPEES
Source text: ID:nNSE9CS35C
Further company coverage: JMSH.NS
(([email protected];;))
Adds RBI lifting restrictions on Kotak Mahindra Bank
Jan 9 (Reuters) - The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) and banks after they improved their compliance following a series of supervisory restrictions.
High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth, including by the federal finance ministry in a recent report.
The Indian central bank also got a new chief in December with Sanjay Malhotra taking over from Shaktikanta Das.
The following is a list of companies whose restrictions have been removed by the RBI.
KOTAK MAHINDRA BANK
The Reserve Bank of India on Wednesday lifted restrictions on Kotak Mahindra Bank KTKM.NS that had barred the lender from taking on new customers via its online and mobile banking channels, and from issuing new credit cards.
RBI had imposed business restrictions on the lender , asking it to stop adding clients through its online and mobile banking channels and issuing credit cards due to gaps in its IT infrastructure.
ASIRVAD MICRO FINANCE, DMI FINANCE, AROHAN FINANCIAL SERVICES, NAVI FINSERV
The RBI, last month, removed restrictions imposed on DMI Finance and Manappuram Finance-owned MNFL.NS Asirvad Micro Finance with immediate effect.
The regulator had in October barred the two companies, along with Arohan Financial Services and Navi Finserv, from sanctioning and disbursing loans due to "usurious" pricing and charging a significant mark-up over their funding costs.
The same restrictions on Arohan were lifted last week, and from Navi in December.
EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE
The central bank last month lifted restrictions on Edelweiss Asset Reconstruction and ECL Finance, first imposed in May 2024, which barred them from acquiring financial assets or undertaking structured transactions.
The regulator was satisfied with the measures taken to address what it had called "evergreening" of distressed loans.
JM FINANCIAL
A unit of financial services firm JM Financial JMSH.NS in October resumed financing activities related to shares and debentures, including loans for IPO subscriptions after the central bank ended restrictive measures.
The RBI in March barred JM Financial Products from issuing such loans, due to regulatory violations and governance concerns.
IIFL FINANCE
In September, the RBI permitted IIFL Finance to resume issuance of gold loans.
The central bank had barred it from offering gold loans in March, citing concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
BAJAJ FINANCE
The RBI in May reversed curbs imposed on India's largest NBFC, Bajaj Finance, allowing it to restart loan disbursals under two of its lending products.
The restrictions were levied in November 2023 due to non-adherence with the central bank's digital lending guidelines.
(Reporting by Nandan Mandayam and Kashish Tandon in Bengaluru; Editing by Varun H K)
(([email protected]; Mobile: +91 9591011727;))
Adds RBI lifting restrictions on Kotak Mahindra Bank
Jan 9 (Reuters) - The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) and banks after they improved their compliance following a series of supervisory restrictions.
High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth, including by the federal finance ministry in a recent report.
The Indian central bank also got a new chief in December with Sanjay Malhotra taking over from Shaktikanta Das.
The following is a list of companies whose restrictions have been removed by the RBI.
KOTAK MAHINDRA BANK
The Reserve Bank of India on Wednesday lifted restrictions on Kotak Mahindra Bank KTKM.NS that had barred the lender from taking on new customers via its online and mobile banking channels, and from issuing new credit cards.
RBI had imposed business restrictions on the lender , asking it to stop adding clients through its online and mobile banking channels and issuing credit cards due to gaps in its IT infrastructure.
ASIRVAD MICRO FINANCE, DMI FINANCE, AROHAN FINANCIAL SERVICES, NAVI FINSERV
The RBI, last month, removed restrictions imposed on DMI Finance and Manappuram Finance-owned MNFL.NS Asirvad Micro Finance with immediate effect.
The regulator had in October barred the two companies, along with Arohan Financial Services and Navi Finserv, from sanctioning and disbursing loans due to "usurious" pricing and charging a significant mark-up over their funding costs.
The same restrictions on Arohan were lifted last week, and from Navi in December.
EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE
The central bank last month lifted restrictions on Edelweiss Asset Reconstruction and ECL Finance, first imposed in May 2024, which barred them from acquiring financial assets or undertaking structured transactions.
The regulator was satisfied with the measures taken to address what it had called "evergreening" of distressed loans.
JM FINANCIAL
A unit of financial services firm JM Financial JMSH.NS in October resumed financing activities related to shares and debentures, including loans for IPO subscriptions after the central bank ended restrictive measures.
The RBI in March barred JM Financial Products from issuing such loans, due to regulatory violations and governance concerns.
IIFL FINANCE
In September, the RBI permitted IIFL Finance to resume issuance of gold loans.
The central bank had barred it from offering gold loans in March, citing concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
BAJAJ FINANCE
The RBI in May reversed curbs imposed on India's largest NBFC, Bajaj Finance, allowing it to restart loan disbursals under two of its lending products.
The restrictions were levied in November 2023 due to non-adherence with the central bank's digital lending guidelines.
(Reporting by Nandan Mandayam and Kashish Tandon in Bengaluru; Editing by Varun H K)
(([email protected]; Mobile: +91 9591011727;))
** India's IndusInd Bank INBK.NS up for eighth straight session, rising 16% in the period to 1,078.70 rupees, highest level in nearly 3 months
** Expectations of MSCI weight increase, reasonable valuations, and hopes of easing stress in microfinance segment aiding gains in INBK
** Stock's weight in MSCI index to be doubled, leading to $145 million inflows, says JM Financial Services
** MSCI index rebalancing scheduled after India market hours on Feb. 11
** Current valuations suggestive of structural 1% RoA profile and market share loss, which is unjustified, ICICI Securities said on Feb. 1
** Says INBK well positioned on the interest rate cycle with high share of fixed-rate loans and non-retail deposits
** Analysts average rating on stock "Buy"; median PT 1,280 rupees - LSEG data
(Reporting by Vivek Kumar M)
** India's IndusInd Bank INBK.NS up for eighth straight session, rising 16% in the period to 1,078.70 rupees, highest level in nearly 3 months
** Expectations of MSCI weight increase, reasonable valuations, and hopes of easing stress in microfinance segment aiding gains in INBK
** Stock's weight in MSCI index to be doubled, leading to $145 million inflows, says JM Financial Services
** MSCI index rebalancing scheduled after India market hours on Feb. 11
** Current valuations suggestive of structural 1% RoA profile and market share loss, which is unjustified, ICICI Securities said on Feb. 1
** Says INBK well positioned on the interest rate cycle with high share of fixed-rate loans and non-retail deposits
** Analysts average rating on stock "Buy"; median PT 1,280 rupees - LSEG data
(Reporting by Vivek Kumar M)
** Shares of JM Financial JMSH.NS fall as much as 11% to 95.28 rupees, lowest since Aug. 26; last down 9.1%
** The financial services firm on Tuesday reported ~25% Y/Y fall in Q3 consol net profit while total rev from ops fell 10.5% Y/Y
** Stock on track for a fourth consecutive session of loss, if trend holds
** More than 6 mln shares change hands, 2.1x of 30-day avg
** Stock fell 13.7% in Dec. qtr, snapping two straight quarters of gain
(Reporting by Ashish Chandra in Bengaluru)
(([email protected] (+91 7982114624))
** Shares of JM Financial JMSH.NS fall as much as 11% to 95.28 rupees, lowest since Aug. 26; last down 9.1%
** The financial services firm on Tuesday reported ~25% Y/Y fall in Q3 consol net profit while total rev from ops fell 10.5% Y/Y
** Stock on track for a fourth consecutive session of loss, if trend holds
** More than 6 mln shares change hands, 2.1x of 30-day avg
** Stock fell 13.7% in Dec. qtr, snapping two straight quarters of gain
(Reporting by Ashish Chandra in Bengaluru)
(([email protected] (+91 7982114624))
Jan 28 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL DEC-QUARTER CONSOL NET PROFIT 2.09 BILLION RUPEES
JM FINANCIAL DEC-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 11.06 BILLION RUPEES
Source text: ID:nBSE5Zs61w
Further company coverage: JMSH.NS
(([email protected];;))
Jan 28 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL DEC-QUARTER CONSOL NET PROFIT 2.09 BILLION RUPEES
JM FINANCIAL DEC-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 11.06 BILLION RUPEES
Source text: ID:nBSE5Zs61w
Further company coverage: JMSH.NS
(([email protected];;))
Jan 15 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL - NAMES ANKUR JHAVERI AS MD, CEO, INSTITUTIONAL EQUITIES
Source text: [ID:]
Further company coverage: JMSH.NS
(([email protected];))
Jan 15 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL - NAMES ANKUR JHAVERI AS MD, CEO, INSTITUTIONAL EQUITIES
Source text: [ID:]
Further company coverage: JMSH.NS
(([email protected];))
Jan 9 (Reuters) - The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) after they improved their compliance following a series of supervisory restrictions.
High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth, including by the federal finance ministry in a recent report.
The Indian central bank also got a new chief in December with Sanjay Malhotra taking over from Shaktikanta Das.
The following is a list of companies whose restrictions have been removed by the RBI.
ASIRVAD MICRO FINANCE, DMI FINANCE, AROHAN FINANCIAL SERVICES, NAVI FINSERV
The RBI on Wednesday removed restrictions imposed on DMI Finance and Manappuram Finance-owned MNFL.NS Asirvad Micro Finance with immediate effect.
The regulator had in October barred the two companies, along with Arohan Financial Services and Navi Finserv, from sanctioning and disbursing loans due to "usurious" pricing and charging a significant mark-up over their funding costs.
The same restrictions on Arohan were lifted last week, and from Navi in December.
EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE
The central bank last month lifted restrictions on Edelweiss Asset Reconstruction and ECL Finance, first imposed in May 2024, which barred them from acquiring financial assets or undertaking structured transactions.
The regulator was satisfied with the measures taken to address what it had called "evergreening" of distressed loans.
JM FINANCIAL
A unit of financial services firm JM Financial JMSH.NS in October resumed financing activities related to shares and debentures, including loans for IPO subscriptions after the central bank ended restrictive measures.
The RBI in March barred JM Financial Products from issuing such loans, due to regulatory violations and governance concerns.
IIFL FINANCE
In September, the RBI permitted IIFL Finance to resume issuance of gold loans.
The central bank had barred it from offering gold loans in March, citing concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
BAJAJ FINANCE
The RBI in May reversed curbs imposed on India's largest NBFC, Bajaj Finance, allowing it to restart loan disbursals under two of its lending products.
The restrictions were levied in November 2023 due to non-adherence with the central bank's digital lending guidelines.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)
(([email protected]; Mobile: +91 9591011727;))
Jan 9 (Reuters) - The Reserve Bank of India has started to ease curbs on non-banking financial companies (NBFCs) after they improved their compliance following a series of supervisory restrictions.
High interest rates and tighter regulations have been cited as contributors to weak demand and a slowdown in India's economic growth, including by the federal finance ministry in a recent report.
The Indian central bank also got a new chief in December with Sanjay Malhotra taking over from Shaktikanta Das.
The following is a list of companies whose restrictions have been removed by the RBI.
ASIRVAD MICRO FINANCE, DMI FINANCE, AROHAN FINANCIAL SERVICES, NAVI FINSERV
The RBI on Wednesday removed restrictions imposed on DMI Finance and Manappuram Finance-owned MNFL.NS Asirvad Micro Finance with immediate effect.
The regulator had in October barred the two companies, along with Arohan Financial Services and Navi Finserv, from sanctioning and disbursing loans due to "usurious" pricing and charging a significant mark-up over their funding costs.
The same restrictions on Arohan were lifted last week, and from Navi in December.
EDELWEISS ASSET RECONSTRUCTION, ECL FINANCE
The central bank last month lifted restrictions on Edelweiss Asset Reconstruction and ECL Finance, first imposed in May 2024, which barred them from acquiring financial assets or undertaking structured transactions.
The regulator was satisfied with the measures taken to address what it had called "evergreening" of distressed loans.
JM FINANCIAL
A unit of financial services firm JM Financial JMSH.NS in October resumed financing activities related to shares and debentures, including loans for IPO subscriptions after the central bank ended restrictive measures.
The RBI in March barred JM Financial Products from issuing such loans, due to regulatory violations and governance concerns.
IIFL FINANCE
In September, the RBI permitted IIFL Finance to resume issuance of gold loans.
The central bank had barred it from offering gold loans in March, citing concerns about its assessment of gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
BAJAJ FINANCE
The RBI in May reversed curbs imposed on India's largest NBFC, Bajaj Finance, allowing it to restart loan disbursals under two of its lending products.
The restrictions were levied in November 2023 due to non-adherence with the central bank's digital lending guidelines.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)
(([email protected]; Mobile: +91 9591011727;))
Jan 3 (Reuters) - JM Financial Ltd JMSH.NS:
RECEIVES ADMINISTRATIVE WARNING FROM SEBI
WARNING RELATED TO IPO OF CLIENT WESTERN CARRIER (INDIA) LIMITED
Source text: ID:nBSE5K473v
Further company coverage: JMSH.NS
(([email protected];;))
Jan 3 (Reuters) - JM Financial Ltd JMSH.NS:
RECEIVES ADMINISTRATIVE WARNING FROM SEBI
WARNING RELATED TO IPO OF CLIENT WESTERN CARRIER (INDIA) LIMITED
Source text: ID:nBSE5K473v
Further company coverage: JMSH.NS
(([email protected];;))
Oct 25 (Reuters) - JM Financial Ltd JMSH.NS:
SEPT-QUARTER CONSOL NET PROFIT 2.32 BILLION RUPEES
SEPT-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 11.91 BILLION RUPEES
Source text for Eikon: [ID:]
Further company coverage: JMSH.NS
(([email protected];;))
Oct 25 (Reuters) - JM Financial Ltd JMSH.NS:
SEPT-QUARTER CONSOL NET PROFIT 2.32 BILLION RUPEES
SEPT-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 11.91 BILLION RUPEES
Source text for Eikon: [ID:]
Further company coverage: JMSH.NS
(([email protected];;))
** Shares of India's JM Financial JMSH.NS jump ~6% to 168 rupees
** The NBFC on Friday said the Reserve Bank of India (RBI) lifted the ban on unit JM Financial Products
** In March, the RBI barred JM Financial Products from issuing loans against shares and debentures, citing regulatory violations and governance concerns
** Stock has risen ~70% YTD
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
** Shares of India's JM Financial JMSH.NS jump ~6% to 168 rupees
** The NBFC on Friday said the Reserve Bank of India (RBI) lifted the ban on unit JM Financial Products
** In March, the RBI barred JM Financial Products from issuing loans against shares and debentures, citing regulatory violations and governance concerns
** Stock has risen ~70% YTD
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
Oct 18 (Reuters) - JM Financial JMSH.NS said on Friday that the Reserve Bank of India has lifted the ban on one of its units, allowing it to resume financing activities related to shares and debentures, including providing loans for IPO subscriptions.
In March, the central bank barred JM Financial Products from giving out loans against shares and debentures due to regulatory violations and governance concerns.
JM Financial's non-banking unit can now immediately offer loans against shares and debentures, according to a brief statement from the financial services group.
In recent years, India's central bank has been pursuing regulatory compliance through increased supervision of banks and non-bank financial institutions.
Its latest regulatory action involves four non-banking finance companies, which have come under scanner due to concerns about their loan pricing practices.
Separately, the Securities and Exchange Board of India had also earlier this year barred JM Financial from accepting new bond issue assignments until March 2025 due to a preliminary investigation into the company and its non-bank finance business.
JM Financial, which offers short-term uncollateralised loans for IPO subscriptions through its non-bank business JM Financial Products, did not immediately respond to a Reuters request for comment.
(Reporting by Indranil Sarkar in Bengaluru; Editing by Tasim Zahid)
(([email protected]; Mobile: +91 7022132226;))
Oct 18 (Reuters) - JM Financial JMSH.NS said on Friday that the Reserve Bank of India has lifted the ban on one of its units, allowing it to resume financing activities related to shares and debentures, including providing loans for IPO subscriptions.
In March, the central bank barred JM Financial Products from giving out loans against shares and debentures due to regulatory violations and governance concerns.
JM Financial's non-banking unit can now immediately offer loans against shares and debentures, according to a brief statement from the financial services group.
In recent years, India's central bank has been pursuing regulatory compliance through increased supervision of banks and non-bank financial institutions.
Its latest regulatory action involves four non-banking finance companies, which have come under scanner due to concerns about their loan pricing practices.
Separately, the Securities and Exchange Board of India had also earlier this year barred JM Financial from accepting new bond issue assignments until March 2025 due to a preliminary investigation into the company and its non-bank finance business.
JM Financial, which offers short-term uncollateralised loans for IPO subscriptions through its non-bank business JM Financial Products, did not immediately respond to a Reuters request for comment.
(Reporting by Indranil Sarkar in Bengaluru; Editing by Tasim Zahid)
(([email protected]; Mobile: +91 7022132226;))
Oct 8 (Reuters) - JM Financial Ltd JMSH.NS:
INDIA COMPETITION WATCHDOG: APPROVES ACQUISITION OF 42.99% STAKE OF JM FINANCIAL CREDIT SOLUTIONS BY JM FINANCIAL
CCI: APPROVES ACQUISITION OF 71.79% STAKE OF JM FINANCIAL ASSET RECONSTRUCTION BY JM FINANCIAL CREDIT SOLUTIONS
Further company coverage: JMSH.NS
(([email protected];))
Oct 8 (Reuters) - JM Financial Ltd JMSH.NS:
INDIA COMPETITION WATCHDOG: APPROVES ACQUISITION OF 42.99% STAKE OF JM FINANCIAL CREDIT SOLUTIONS BY JM FINANCIAL
CCI: APPROVES ACQUISITION OF 71.79% STAKE OF JM FINANCIAL ASSET RECONSTRUCTION BY JM FINANCIAL CREDIT SOLUTIONS
Further company coverage: JMSH.NS
(([email protected];))
Aug 6 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL LTD JUNE-QUARTER CONSOL NET PROFIT 1.71 BILLION RUPEES
JM FINANCIAL LTD JUNE-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 10.77 BILLION RUPEES
Source text for Eikon: [ID:]
Further company coverage: JMSH.NS
(([email protected];))
Aug 6 (Reuters) - JM Financial Ltd JMSH.NS:
JM FINANCIAL LTD JUNE-QUARTER CONSOL NET PROFIT 1.71 BILLION RUPEES
JM FINANCIAL LTD JUNE-QUARTER CONSOL TOTAL REVENUE FROM OPERATIONS 10.77 BILLION RUPEES
Source text for Eikon: [ID:]
Further company coverage: JMSH.NS
(([email protected];))
** Shares of JM Financial Ltd JMSH.NS fall as much as 3.6% to 84.21 rupees
** India markets regulator bars JMSH from new mandates for bond issues until March 31, 2025, due to regulatory lapses
** India cenbank, also the financial regulator, first barred JMSH unit in early March and since then, the stock has slid 11%
** Stock dips below 100- and 200-day moving avgs again after briefly hitting those levels on Thurs
** Stock had been below 200-DMA since RBI March order and below 100-DMA since early May
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
** Shares of JM Financial Ltd JMSH.NS fall as much as 3.6% to 84.21 rupees
** India markets regulator bars JMSH from new mandates for bond issues until March 31, 2025, due to regulatory lapses
** India cenbank, also the financial regulator, first barred JMSH unit in early March and since then, the stock has slid 11%
** Stock dips below 100- and 200-day moving avgs again after briefly hitting those levels on Thurs
** Stock had been below 200-DMA since RBI March order and below 100-DMA since early May
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
June 20 (Reuters) - JM Financial Ltd JMSH.NS:
SEBI - CONFIRMATORY ORDER IN MATTER OF JM FINANCIAL
SEBI - JM FINANCIAL SHALL NOT ACT AS LEAD MANAGER IN ANY PUBLIC ISSUE OF DEBT SECURITIES TILL MARCH 31,2025 OR OTHER DATE SPECIFIED BY SEBI
Source text for Eikon: [ID:]
Further company coverage: JMSH.NS
(([email protected];;))
June 20 (Reuters) - JM Financial Ltd JMSH.NS:
SEBI - CONFIRMATORY ORDER IN MATTER OF JM FINANCIAL
SEBI - JM FINANCIAL SHALL NOT ACT AS LEAD MANAGER IN ANY PUBLIC ISSUE OF DEBT SECURITIES TILL MARCH 31,2025 OR OTHER DATE SPECIFIED BY SEBI
Source text for Eikon: [ID:]
Further company coverage: JMSH.NS
(([email protected];;))
Updates Factbox published on April 25 with recent RBI actions
By Jaspreet Kalra and Siddhi Nayak
MUMBAI, May 30 (Reuters) - The Reserve Bank of India's (RBI) increased scrutiny of banks and other financial firms has resulted in a spate of supervisory restrictions, most recently on two Edelweiss Group companies for engaging in 'evergreening' of distressed assets.
On Tuesday, the RBI said Edelweiss Asset Reconstruction Co Ltd (EARCL) and non-banking firm ECL Finance (ECL) had entered into a series of structured transactions for evergreening some stressed loans, barring both firms from acquiring financial assets or undertaking structured transactions.
Since 2020, the RBI has placed business restrictions on many players. The following are some of its key actions:
HDFC BANK
In December 2020 the RBI ordered HDFC Bank to stop all launches of new digital products and issuance of new credit cards following multiple outages on the bank's digital banking channels.
The restrictions lasted until March 2022 which hindered the bank's business growth, contributing to underperformance of its stock compared to its peers.
BANK OF BARODA
In October 2023, the central bank barred state-run Bank of Baroda from adding customers to its mobile app, bob World.
Al Jazeera reported that Bank of Baroda had linked mobile numbers of strangers to boost registrations on the application, compromising security.
The restriction was lifted earlier in May after the bank rectified the deficiencies.
BAJAJ FINANCE
In November 2023 the RBI ordered India's largest non-bank finance company (NBFC), Bajaj Finance, to stop offering loans under two of its lending products.
The restrictions were levied due to non-adherence with the central bank's digital lending guidelines and were reversed earlier this month.
PAYTM PAYMENTS BANK
At the end of January 2024 the RBI asked Paytm Payments Bank to wind down its operations by March 15 due to persistent compliance issues and supervisory concerns.
Reuters reported that the RBI's concerns stemmed largely from violations of rules on customer due diligence, use of funds and technology infrastructure.
IIFL FINANCE
In early March 2024 the RBI barred IIFL Finance, an NBFC, from offering gold loans, citing concerns about the lender's assessment of the gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
The restrictions are still in effect.
JM FINANCIAL
Also in March 2024, non-bank financier JM Financial was barred from giving out loans against shares and debentures due to regulatory violations and governance concerns.
The central bank said it found serious deficiencies in respect of loans sanctioned by the company for IPO financing. The non-bank lender continues to be barred from operating in the segment.
(Reporting by Jaspreet Kalra and Siddhi Nayak; Editing by Nivedita Bhattacharjee)
(([email protected]; +91-8769636545;))
Updates Factbox published on April 25 with recent RBI actions
By Jaspreet Kalra and Siddhi Nayak
MUMBAI, May 30 (Reuters) - The Reserve Bank of India's (RBI) increased scrutiny of banks and other financial firms has resulted in a spate of supervisory restrictions, most recently on two Edelweiss Group companies for engaging in 'evergreening' of distressed assets.
On Tuesday, the RBI said Edelweiss Asset Reconstruction Co Ltd (EARCL) and non-banking firm ECL Finance (ECL) had entered into a series of structured transactions for evergreening some stressed loans, barring both firms from acquiring financial assets or undertaking structured transactions.
Since 2020, the RBI has placed business restrictions on many players. The following are some of its key actions:
HDFC BANK
In December 2020 the RBI ordered HDFC Bank to stop all launches of new digital products and issuance of new credit cards following multiple outages on the bank's digital banking channels.
The restrictions lasted until March 2022 which hindered the bank's business growth, contributing to underperformance of its stock compared to its peers.
BANK OF BARODA
In October 2023, the central bank barred state-run Bank of Baroda from adding customers to its mobile app, bob World.
Al Jazeera reported that Bank of Baroda had linked mobile numbers of strangers to boost registrations on the application, compromising security.
The restriction was lifted earlier in May after the bank rectified the deficiencies.
BAJAJ FINANCE
In November 2023 the RBI ordered India's largest non-bank finance company (NBFC), Bajaj Finance, to stop offering loans under two of its lending products.
The restrictions were levied due to non-adherence with the central bank's digital lending guidelines and were reversed earlier this month.
PAYTM PAYMENTS BANK
At the end of January 2024 the RBI asked Paytm Payments Bank to wind down its operations by March 15 due to persistent compliance issues and supervisory concerns.
Reuters reported that the RBI's concerns stemmed largely from violations of rules on customer due diligence, use of funds and technology infrastructure.
IIFL FINANCE
In early March 2024 the RBI barred IIFL Finance, an NBFC, from offering gold loans, citing concerns about the lender's assessment of the gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
The restrictions are still in effect.
JM FINANCIAL
Also in March 2024, non-bank financier JM Financial was barred from giving out loans against shares and debentures due to regulatory violations and governance concerns.
The central bank said it found serious deficiencies in respect of loans sanctioned by the company for IPO financing. The non-bank lender continues to be barred from operating in the segment.
(Reporting by Jaspreet Kalra and Siddhi Nayak; Editing by Nivedita Bhattacharjee)
(([email protected]; +91-8769636545;))
By Jaspreet Kalra and Siddhi Nayak
MUMBAI, April 25 (Reuters) - The Reserve Bank of India's (RBI) increased scrutiny of banks and other financial firms has resulted in a spate of supervisory restrictions, most recently on Kotak Mahindra Bank, India's fourth largest private lender by assets.
On Wednesday the RBI barred Kotak Mahindra Bank from taking on new customers digitally and issuing credit cards, due to information technology-related deficiencies.
Since 2020, the RBI has placed business restrictions on HDFC Bank, India's largest private lender, Paytm Payments Bank, the banking unit of fintech firm Paytm, and JM Financial, among others. Following are some of the key actions:
HDFC BANK
In December 2020 the RBI ordered HDFC Bank to stop all launches of new digital products and issuance of new credit cards following multiple outages on the bank's digital banking channels.
The restrictions lasted until March 2022 which hindered the bank's business growth, contributing to underperformance of its stock compared to its peers.
BANK OF BARODA
In October 2023, the central bank barred state-run Bank of Baroda from adding customers to its mobile app, bob World.
Al Jazeera reported that Bank of Baroda had linked mobile numbers of strangers to boost registrations on the application, compromising security.
The restriction is yet to be lifted.
BAJAJ FINANCE
In November 2023 the RBI ordered India's largest non-bank finance company (NBFC), Bajaj Finance, to stop offering loans under two of its lending products.
The restrictions were levied due to non-adherence with the central bank's digital lending guidelines. The restrictions are still in effect.
PAYTM PAYMENTS BANK
At the end of January 2024 the RBI asked Paytm Payments Bank to wind down its operations by March 15 due to persistent compliance issues and supervisory concerns.
Reuters reported that the RBI's concerns stemmed largely from violations of rules on customer due diligence, use of funds and technology infrastructure.
IIFL FINANCE
In early March 2024 the RBI barred IIFL Finance, an NBFC, from offering gold loans, citing concerns about the lender's assessment of the gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
The restrictions are still in effect.
JM FINANCIAL
Also in March 2024, non-bank financier JM Financial was barred from giving out loans against shares and debentures due to regulatory violations and governance concerns.
The central bank said it found serious deficiencies in respect of loans sanctioned by the company for IPO financing. The non-bank lender continues to be barred from operating in the segment.
(Reporting by Jaspreet Kalra and Siddhi Nayak)
(([email protected]; +91-8769636545;))
By Jaspreet Kalra and Siddhi Nayak
MUMBAI, April 25 (Reuters) - The Reserve Bank of India's (RBI) increased scrutiny of banks and other financial firms has resulted in a spate of supervisory restrictions, most recently on Kotak Mahindra Bank, India's fourth largest private lender by assets.
On Wednesday the RBI barred Kotak Mahindra Bank from taking on new customers digitally and issuing credit cards, due to information technology-related deficiencies.
Since 2020, the RBI has placed business restrictions on HDFC Bank, India's largest private lender, Paytm Payments Bank, the banking unit of fintech firm Paytm, and JM Financial, among others. Following are some of the key actions:
HDFC BANK
In December 2020 the RBI ordered HDFC Bank to stop all launches of new digital products and issuance of new credit cards following multiple outages on the bank's digital banking channels.
The restrictions lasted until March 2022 which hindered the bank's business growth, contributing to underperformance of its stock compared to its peers.
BANK OF BARODA
In October 2023, the central bank barred state-run Bank of Baroda from adding customers to its mobile app, bob World.
Al Jazeera reported that Bank of Baroda had linked mobile numbers of strangers to boost registrations on the application, compromising security.
The restriction is yet to be lifted.
BAJAJ FINANCE
In November 2023 the RBI ordered India's largest non-bank finance company (NBFC), Bajaj Finance, to stop offering loans under two of its lending products.
The restrictions were levied due to non-adherence with the central bank's digital lending guidelines. The restrictions are still in effect.
PAYTM PAYMENTS BANK
At the end of January 2024 the RBI asked Paytm Payments Bank to wind down its operations by March 15 due to persistent compliance issues and supervisory concerns.
Reuters reported that the RBI's concerns stemmed largely from violations of rules on customer due diligence, use of funds and technology infrastructure.
IIFL FINANCE
In early March 2024 the RBI barred IIFL Finance, an NBFC, from offering gold loans, citing concerns about the lender's assessment of the gold collateral and violations of the maximum permitted loan-to-value ratio, among other issues.
The restrictions are still in effect.
JM FINANCIAL
Also in March 2024, non-bank financier JM Financial was barred from giving out loans against shares and debentures due to regulatory violations and governance concerns.
The central bank said it found serious deficiencies in respect of loans sanctioned by the company for IPO financing. The non-bank lender continues to be barred from operating in the segment.
(Reporting by Jaspreet Kalra and Siddhi Nayak)
(([email protected]; +91-8769636545;))
** Shares of JM Financial JMSH.NS down 7.3% at 81.50 rupees
** India's markets regulator SEBI banned the financial services group from managing any new bond issues
** JMSH provided funds to individual investors to invest in public debt issues, while simultaneously assuring them of an exit at a profit on the listing day, SEBI said
** Stock down ~15% since India's RBI barred JMSH's non-bank unit on March 5 from lending against shares or debentures
(Reporting by Kashish Tandon in Bengaluru)
** Shares of JM Financial JMSH.NS down 7.3% at 81.50 rupees
** India's markets regulator SEBI banned the financial services group from managing any new bond issues
** JMSH provided funds to individual investors to invest in public debt issues, while simultaneously assuring them of an exit at a profit on the listing day, SEBI said
** Stock down ~15% since India's RBI barred JMSH's non-bank unit on March 5 from lending against shares or debentures
(Reporting by Kashish Tandon in Bengaluru)
By Jayshree P Upadhyay and Dharamraj Dhutia
MUMBAI, March 8 (Reuters) - India's financial market regulator and its central bank are widening an investigation into how merchant banks manage retail subscriptions in public debt issues, two sources with direct knowledge of the matter told Reuters.
The Securities and Exchange Board of India (SEBI) barred JM Financial from taking new mandates this week, saying it had found that funds from connected entities were used to inflate subscriptions and provide an assured exit to investors.
JM Financial said in a stock exchange filing on Thursday that it will fully cooperate with SEBI in its investigations.
The Reserve Bank of India (RBI), meanwhile, has told JM Financial's non-banking unit to stop any form of financing against shares and debentures, including loans to customers to subscribe to initial public offerings (IPOs).
Several other cases are under investigation to see if merchant banks provided investors with an exit through connected non-banking finance firms, said the two sources, who declined to be named as they are not authorised to speak to the media.
Investigators are also studying if disproportionate loans were given to subscribes and whether customer identification processes were not adequately followed, the sources added.
SEBI and RBI did not respond to requests for comment.
Indian regulations do not bar investors from taking on credit to subscribe to debt securities in public issues.
However, assuring investors of a profitable exit would break the code of conduct for merchant banks which bars them from creating an artificial market.
MARKET IMPACT
Indian companies have raised more than 200 billion rupees ($2.4 billion) via public issues of bonds so far this financial year, more than double last year, data from Prime Database showed. This is also the highest in last five years.
Five merchant bankers told Reuters that the regulatory scrutiny of processes followed in the public debt market could cut subscriptions for such issues and raise the cost of funds.
"This will now lead to a slowdown in retail subscriptions, as an artificial demand for the product was created, which actually did not exist," said one banker, declining to be identified as they are not authorised to speak to the media.
Non-bank lenders, which are looking to diversify their source of funds after the central bank raised capital requirements for banks to lend to them, may be hardest hit.
Bank lending to NBFCs has slowed in the past few months and SEBI's investigation could push them back to fundraising through private debt placements, said Vinay Pai, head of fixed income at Equirus.
($1 = 82.7070 Indian rupees)
(Reporting by Jayshree P Upadhyay and Dharamraj Dhutia; Additional reporting by Bhakti Tambe; Editing by Ira Dugal and Alexander Smith)
(([email protected];))
By Jayshree P Upadhyay and Dharamraj Dhutia
MUMBAI, March 8 (Reuters) - India's financial market regulator and its central bank are widening an investigation into how merchant banks manage retail subscriptions in public debt issues, two sources with direct knowledge of the matter told Reuters.
The Securities and Exchange Board of India (SEBI) barred JM Financial from taking new mandates this week, saying it had found that funds from connected entities were used to inflate subscriptions and provide an assured exit to investors.
JM Financial said in a stock exchange filing on Thursday that it will fully cooperate with SEBI in its investigations.
The Reserve Bank of India (RBI), meanwhile, has told JM Financial's non-banking unit to stop any form of financing against shares and debentures, including loans to customers to subscribe to initial public offerings (IPOs).
Several other cases are under investigation to see if merchant banks provided investors with an exit through connected non-banking finance firms, said the two sources, who declined to be named as they are not authorised to speak to the media.
Investigators are also studying if disproportionate loans were given to subscribes and whether customer identification processes were not adequately followed, the sources added.
SEBI and RBI did not respond to requests for comment.
Indian regulations do not bar investors from taking on credit to subscribe to debt securities in public issues.
However, assuring investors of a profitable exit would break the code of conduct for merchant banks which bars them from creating an artificial market.
MARKET IMPACT
Indian companies have raised more than 200 billion rupees ($2.4 billion) via public issues of bonds so far this financial year, more than double last year, data from Prime Database showed. This is also the highest in last five years.
Five merchant bankers told Reuters that the regulatory scrutiny of processes followed in the public debt market could cut subscriptions for such issues and raise the cost of funds.
"This will now lead to a slowdown in retail subscriptions, as an artificial demand for the product was created, which actually did not exist," said one banker, declining to be identified as they are not authorised to speak to the media.
Non-bank lenders, which are looking to diversify their source of funds after the central bank raised capital requirements for banks to lend to them, may be hardest hit.
Bank lending to NBFCs has slowed in the past few months and SEBI's investigation could push them back to fundraising through private debt placements, said Vinay Pai, head of fixed income at Equirus.
($1 = 82.7070 Indian rupees)
(Reporting by Jayshree P Upadhyay and Dharamraj Dhutia; Additional reporting by Bhakti Tambe; Editing by Ira Dugal and Alexander Smith)
(([email protected];))
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Popular questions
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What does JM Financial do?
JM Financial Limited is a leading financial services group in India, offering a wide range of services to corporations, financial institutions, and individual investors. Their diverse businesses include Investment Banking, Wealth Management, Mortgage Lending, Distressed Credit, and Asset Management.
Who are the competitors of JM Financial?
JM Financial major competitors are Pilani Investment, Summit Securities, Gyftr, Dolat Algotech, Indl & Prud Invts.Co, Crest Ventures, Consolid. Finv.&Hold. Market Cap of JM Financial is ₹12,503 Crs. While the median market cap of its peers are ₹1,281 Crs.
Is JM Financial financially stable compared to its competitors?
JM Financial seems to be less financially stable compared to its competitors. Altman Z score of JM Financial is 1.51 and is ranked 8 out of its 8 competitors.
Does JM Financial pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. JM Financial latest dividend payout ratio is 31.42% and 3yr average dividend payout ratio is 35.61%
How has JM Financial allocated its funds?
Companies resources are allocated to majorly productive assets like Plant & Machinery and unproductive assets like Cash & Short Term Investments, Capital Work in Progress, Inventory, Accounts Receivable, Short Term Loans & Advances
How strong is JM Financial balance sheet?
JM Financial balance sheet is weak and might have solvency issues
Is the profitablity of JM Financial improving?
Yes, profit is increasing. The profit of JM Financial is ₹1,177 Crs for TTM, ₹821 Crs for Mar 2025 and ₹410 Crs for Mar 2024.
Is the debt of JM Financial increasing or decreasing?
The net debt of JM Financial is decreasing. Latest net debt of JM Financial is -₹4,868.11 Crs as of Mar-26. This is less than Mar-25 when it was ₹2,688 Crs.
Is JM Financial stock expensive?
JM Financial is not expensive. Latest PE of JM Financial is 10.4, while 3 year average PE is 14.4. Also latest EV/EBITDA of JM Financial is 3.04 while 3yr average is 3.63.
Has the share price of JM Financial grown faster than its competition?
JM Financial has given lower returns compared to its competitors. JM Financial has grown at ~9.44% over the last 10yrs while peers have grown at a median rate of 17.89%
Is the promoter bullish about JM Financial?
Promoters seem to be bullish about the company. Latest quarter promoter holding is 57.07% and last quarter promoter holding is 56.9%.
Are mutual funds buying/selling JM Financial?
The mutual fund holding of JM Financial is increasing. The current mutual fund holding in JM Financial is 5.17% while previous quarter holding is 5.08%.