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JM Financial is currently trading at Rs. 79.80, down by 15.73 points or 16.47% from its previous closing of Rs. 95.53 on the BSE.

The scrip opened at Rs. 77.10 and has touched a high and low of Rs. 84.80 and Rs. 77.10 respectively. So far 3144922 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 114.95 on 29-Jan-2024 and a 52 week low of Rs. 57.38 on 29-Mar-2023.

Last one week high and low of the scrip stood at Rs. 100.82 and Rs. 77.10 respectively. The current market cap of the company is Rs. 7757.34 crore.

The promoters holding in the company stood at 56.44%, while Institutions and Non-Institutions held 26.38% and 17.18% respectively.

The Reserve Bank of India (RBI) has directed JM Financial’s subsidiary -- JM Financial Products (JMFPL) to cease and desist, with immediate effect, from doing any form of financing against shares and debentures, including sanction and disbursal of loans against Initial Public Offering (IPO) of shares as well as against subscription to debentures. The Company shall, however, continue to service its existing loan accounts through the usual collection and recovery process. This action is necessitated due to certain serious deficiencies observed in respect of loans sanctioned by the company for IPO financing as well as NCD subscriptions. The RBI carried out a limited review of the books of the company on the basis of the information shared by the Securities and Exchange Board of India (SEBI).

During the limited review it was observed, inter alia, that the company repeatedly helped a group of its customers to bid for various IPO and NCD offerings by using loaned funds. The credit underwriting was found to be perfunctory, and financing was done against meagre margins. The application for subscription, the demat accounts and the bank accounts, all were operated by the company using a Power of Attorney (POA) and a Master Agreement obtained from these customers without their involvement, whatsoever, in the subsequent operations. Consequently, the company was able to effectively act as both lender as well as borrower. The company also acted as the arranger of bank account opening as well as operator of the said bank accounts using the POA. 

Apart from being in violation of regulatory guidelines, there are serious concerns on governance issues in the company, which in assessment are detrimental to the interest of the customers. Regulatory violations and deficiencies, if any, on the part of the bank(s) in this regard is being examined separately. The business restrictions now being imposed, will be reviewed upon the completion of a special audit to be instituted by the RBI and after rectification of the deficiencies to the satisfaction of RBI. Further, these business restrictions are without prejudice to any other Regulatory or Supervisory action that may be initiated by RBI, against the company.

JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients.