JM Financial Ltd (JMFL) on Saturday said it had received an administrative warning letter from SEBI. This warning pertains to the company’s role as a Merchant Banker in relation to certain past public issuances of non-convertible debentures (NCDs)
JMFL, in an exchange filing, said the SEBI letter is pursuant to an inspection conducted by it, wherein the markets regulator observed some discrepancies/deficiencies in due-diligence, recording documents and disclosures in relation to certain past public issuances of NCDs, for which the company was acting as one of the lead managers.
“Accordingly, SEBI has, inter-alia, advised the company to take appropriate corrective steps, place the findings of the inspection along with the copy of the SEBI letter before its board of directors and submit an action taken report to SEBI.
“There is no impact on financial, operations or other activities of the Company pursuant to the SEBI letter,” JMFL said.
In March 2024, RBI cracked the whip on JM Financial Products Ltd (JMFPL) after it discovered certain serious deficiencies regarding loans sanctioned by the company for IPO financing and NCD subscriptions.JM Financial owns a 99.71 per cent stake in JMFPL.