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JM Financial shares tank 9 pc in morning trade

New Delhi, Mar 11 (PTI) Shares of JM Financial tanked 9 per cent in the mid-session trade on Monday after Sebi had barred JM Financial Ltd from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms.

New Delhi, Mar 11 (PTI) Shares of JM Financial tanked 9 per cent in the mid-session trade on Monday after Sebi had barred JM Financial Ltd from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms.

The stock of JM Financial plunged 8.72 per cent to Rs 80.27 apiece on the BSE.

The scrip of the company tumbled 8.64 per cent to Rs 80.35 per piece on the NSE.

The 30-share BSE Sensex benchmark slumped 275.78 points to 73,843.61, while NSE Nifty slipped 71.10 points to 22,422.45.

On Thursday, Sebi had barred JM Financial Ltd from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms.

However, in the case of existing mandates, JM Financial can continue to act as a lead manager for the public issue of debt securities for a period of 60 days, Sebi said in its interim order.

The regulator's order came days after the Reserve Bank of India (RBI) barred JM Financial Products Ltd from providing any form of financing against shares and debentures, including sanction and disbursal of loans against Initial Public Offering (IPO).

The Sebi's directive came after the markets regulator undertook a routine examination of the public issues of Non-Convertible Debentures (NCD) during the year 2023. The investigation focused on the activities of JM Financial and its related entities in a particular debt issue.

After being barred from accepting new mandates by Sebi, JM Financial has said it would fully cooperate with the capital market regulator in its investigation into the public issue of debt securities.

Following the order, JM Financial in a filing to the stock exchanges on Thursday said, 'The company shall fully cooperate with Sebi in this investigation'. PTI HG DR

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