Sebi confirms bans JM Financial from managing debt public issues till March

Markets regulator Sebi on Thursday confirmed the interim directions to bar JM Financial Ltd from acting as a lead manager for public issues of debt securities until March 31, 2025, in a case of alleged irregularities in a public issue of non-convertible debentures (NCDs).

The regulator, in a confirmatory order, clarified that the restriction only applies to public issues of debt securities and does not affect JM Financial Ltd (JMFL) other activities, including equity issues.

In its interim order issued on March 7, Sebi barred JMFL from taking new mandates as a lead manager for public issues of debt securities due to potential irregularities in a public issue of non-convertible debentures (NCDs).

JMFL, as a lead manager, had allegedly irregular practices involving retail investors and associated companies within the JM Group.

Sebi, prima facie, found that JM Group entities appeared to incentivise investors to apply for securities in issues managed by JMFL.

It noted that significant