India's central bank lifts restrictions on JM Financial's non-banking unit
Oct 18 (Reuters) -JM Financial JMSH.NS said on Friday that the Reserve Bank of India has liftedthe ban on one of its units, allowing it to resume financing activities related to shares and debentures, including providing loans for IPO subscriptions.
In March, the central bank barred JM Financial Products from giving out loans against shares and debentures due to regulatory violations and governance concerns.
JM Financial's non-banking unit can now immediately offer loans against shares and debentures, according to a brief statement from the financial services group.
In recent years, India's central bankhas been pursuing regulatory compliance through increased supervision of banks and non-bank financial institutions.
Its latest regulatory action involves four non-banking finance companies, which have come under scanner due to concerns about their loan pricing practices.
Separately, the Securities and Exchange Board of India had also earlier this year barred JM Financial from accepting new bond issue assignments until March 2025 due to a preliminary investigation into the company and its non-bank finance business.
JM Financial, which offers short-term uncollateralised loans for IPO subscriptions through its non-bank business JM Financial Products, did not immediately respond to a Reuters request for comment.
Reporting by Indranil Sarkar in Bengaluru; Editing by Tasim Zahid
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