RBI Lifts Ban on JM Financial Subsidiary, Restores Financing Privileges

The Reserve Bank of India has lifted restrictions imposed on JM Financial Products Ltd, allowing the firm to resume financing against shares and debentures. Initially barred from such activities in March 2024, the company is now permitted to provide financing in line with regulatory compliance.

The Reserve Bank of India (RBI) has lifted a previous set of restrictions placed on JM Financial Products Ltd, a subsidiary of JM Financial. The restrictions, initially enforced in March 2024, had previously halted the company's ability to finance against shares and debentures—an integral part of its business operations.

The lifting of restrictions came through an official communication from the RBI on October 18, 2024. This move effectively restores JM Financial Products Ltd's capacity to issue loans against shares and debentures, emphasizing that the company must comply with all applicable laws and regulations.

Initially, the RBI barred the company from providing loans, particularly for initial public offering (IPO) shares. The latest development marks a significant shift in JM Financial's operational capabilities, allowing them to re-engage in these previously restricted financial activities.

(With inputs from agencies.)