SEBI points warning to JM Monetary over NCD issuances

JM Monetary Ltd (JMFL) on Saturday stated it had obtained an administrative warning letter from SEBI. This warning pertains to the corporate’s function as a Service provider Banker in relation to sure previous public issuances of non-convertible debentures (NCDs)

JMFL, in an alternate submitting, stated the SEBI letter is pursuant to an inspection performed by it, whereby the markets regulator noticed some discrepancies/deficiencies in due-diligence, recording paperwork and disclosures in relation to sure previous public issuances of NCDs, for which the corporate was performing as one of many lead managers.

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“Accordingly, SEBI has, inter-alia, suggested the corporate to take acceptable corrective steps, place the findings of the inspection together with the copy of the SEBI letter earlier than its board of administrators and submit an motion taken report back to SEBI.

“There isn’t a affect on monetary, operations or different actions of the Firm pursuant to the SEBI letter,” JMFL stated.

In March 2024, RBI cracked the whip on JM Monetary Merchandise Ltd (JMFPL) after it found sure critical deficiencies concerning loans sanctioned by the corporate for IPO financing and NCD subscriptions.JM Monetary owns a 99.71 per cent stake in JMFPL.