(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelShares of JM Financial jumped 6.3% to a fresh 52-week high of Rs 168.70 on the BSE after the Reserve Bank of India lifted the restrictions placed on its subsidiary, JM Financial Products The restrictions had prohibited the subsidiary from engaging in any business related to funding for shares and bonds due to regulatory violations and governance issues.
"The RBI had ordered JM Financial Products to cease financing against shares and debentures, including the sanction and disbursal of loans for IPOs and subscriptions to debentures.
With the lifting of these restrictions, the company can now resume these activities.JM Financial Products is recognized as a systemically important non-banking finance company (NBFC) registered with the RBI, with 99.71% ownership by publicly listed JM Financial Ltd.
The subsidiary focuses on capital market, bespoke financing, and real estate financing.The RBI's earlier ban was based on serious deficiencies observed in loans sanctioned for IPO financing and subscriptions to non-convertible debentures.
As of the end of the third quarter for FY24, JM Financial Products reported a loan book of Rs 4,600 crore and assets under management of Rs 7,197 crore, according to stock exchange disclosures.The counter has surged 60% in 2024 so far, meanwhile, it has delivered 97% returns to its investors in the last one year.

JM Financial shares zoom 6% after RBI lifts curbs on co’s non-banking unit