JM Financial Products Limited

RBI imposed a monetary penalty of ₹3.10 lakh on JM Financial Products Limited. The penalty was for failing to disclose a material related party transaction in its Annual Report.

JM Financial Products Limited must bear the ₹3.10 lakh penalty, and the order signals regulatory scrutiny of its disclosure practices. RBI also noted that the penalty is without prejudice to any other action that may be initiated.

• Section 58G(1)(b) of the Reserve Bank of India Act, 1934
• Section 58B(5)(aa) of the Reserve Bank of India Act, 1934

RBI has directed JM Financial Products Limited to stop financing against shares and debentures, including IPO financing and loans against debenture subscriptions. The order cites serious deficiencies, weak underwriting, and governance issues.

With immediate effect, JMFPL cannot originate or disburse financing against shares and debentures, including IPO-linked loans and loans against debenture subscriptions. It may continue servicing existing loan accounts through normal collection and recovery, but the business line is effectively halted until RBI's review after special audit and rectification; customers seeking such financing are directly affected.

• Section 45L(1)(b) of the Reserve Bank of India Act, 1934