{"id":11533,"date":"2024-03-07T17:49:25","date_gmt":"2024-03-07T12:19:25","guid":{"rendered":"https:\/\/bigbreakingwire.in\/sebi-restricts-jm-financials-lead-manager-role-amid-concerns-over-public-issue-practices\/"},"modified":"2024-03-07T17:56:24","modified_gmt":"2024-03-07T12:26:24","slug":"sebi-restricts-jm-financials-lead-manager-role-amid-concerns-over-public-issue-practices","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/sebi-restricts-jm-financials-lead-manager-role-amid-concerns-over-public-issue-practices\/","title":{"rendered":"SEBI Restricts JM Financial’s Lead Manager Role Amid Concerns Over Public Issue Practices"},"content":{"rendered":"
<\/div>\n

Regulatory Action Against JM Financial:<\/strong>
\u00a0\u00a0 – The Securities and Exchange Board of India (SEBI) has prohibited JM Financial from taking on new mandates as a lead manager for public issues of debt securities.
\u00a0 – This action is based on an interim order issued on March 7, following SEBI’s routine examination into non-convertible debentures (NCDs) public issues in 2023.

Limited Lead Management Role for JM Financial:<\/strong>
\u00a0– Despite the ban, JM Financial is allowed to continue acting as a lead manager for public issues of debt securities, but this permission is limited to a period of 60 days from the date of the SEBI order.

Investigation Findings:<\/strong>
\u00a0\u00a0 – SEBI’s examination revealed a scheme employed by JM Financial in public issues of NCDs.
\u00a0\u00a0 – The scheme, as noted prima facie, involved encouraging individual investors, who might not have otherwise participated, to apply for the securities.
\u00a0\u00a0 – This encouragement went beyond just providing funds; it included assurances of a profitable exit on the listing day.

Investor Engagement Strategy:<\/strong>
\u00a0\u00a0 – The order highlighted that the strategy involved attracting investors seeking funding for applying in a public issue of securities.
\u00a0\u00a0 – These investors aimed to capitalize on trading gains resulting from price movements post-listing.

Profitability Challenges:<\/strong>
\u00a0\u00a0 – The regulator observed that for these trades to be profitable, there needed to be a significant increase in the price of the security after listing.
\u00a0\u00a0 – It emphasized that despite the potential gains, the interest charged by the lender on such loans added a layer of complexity, requiring a substantial post-listing price jump for profitability.<\/p>\n\n\n\n

Prima Facie Concerns:<\/strong>
   – SEBI’s order expressed prima facie concerns about the nature of JM Financial’s engagement strategy, indicating a need for further investigation into potential market manipulation or unfair practices.<\/p>\n\n\n\n

Temporal Restriction on Activities:<\/strong>
   – The 60-day limit on JM Financial’s lead management role is a temporary measure, allowing SEBI to conduct a more thorough examination into the alleged practices and take appropriate actions if needed.<\/p>\n","protected":false},"excerpt":{"rendered":"

Regulatory Action Against JM Financial:\u00a0\u00a0 – The Securities and Exchange Board of India (SEBI) has prohibited JM Financial from taking on new mandates as a…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[618,31,29,616,619],"tags":[2201,2206,2203,2065,2200,2204,2202,2069,249,2205],"class_list":["post-11533","post","type-post","status-publish","format-standard","hentry","category-brokerage-reports","category-business","category-finance","category-stock-in-news","category-stocks-in-news","tag-debt-securities","tag-interim-order","tag-investor-engagement","tag-jm-financial","tag-lead-manager","tag-market-manipulation","tag-ncds","tag-regulatory-action","tag-sebi","tag-trading-gains","entry","rows"],"jetpack_publicize_connections":[],"modified_by":null,"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfgCxS-301","jetpack_sharing_enabled":true,"jetpack_likes_enabled":false,"_links":{"self":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/11533","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/comments?post=11533"}],"version-history":[{"count":0,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/11533\/revisions"}],"wp:attachment":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media?parent=11533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/categories?post=11533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/tags?post=11533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}