RBI in March found violations by its arm and issued "cease and desist" order with regards to financing against shares and debentures, including sanction and disbursal of loans against IPO of shares
JM Financial can, however, continue to act as a lead manager for the public issue of debt securities for the existing mandates for 60 days from the date of the order.
The RBI on Tuesday barred JM Financial Products from giving loans against shares and debentures, including sanction and disbursal of loans against IPO of shares, with immediate effect.