JM Financial shares tumble 8% in another sudden selloff – find out what’s behind the continued volatility in this major Indian financial company’s stock price.
JM Financial Shares :
Fell more than 8 percent in early trade today, March 11. Market regulator SEBI has barred the company from acting as lead manager in public offers of any debt securities. After this there was a sharp decline in its shares. SEBI has imposed this ban on JM Financial due to unfair trade practices. SEBI, in an interim order, said JM Financial can act as lead manager for 60 days to the public issue of debt securities that it currently holds.
Following a routine review of the public offering of non-convertible debentures (NCD) in 2023, SEBI issued this directive. According to SEBI’s inquiry, JM Financial and its two subsidiaries committed fraud together. The problem of state debt emerged in 2023. The issue’s main manager was JM Financial.
Retail investors were given monies by one of its affiliated firms to participate in this offering. then purchased these stocks from them. sold them thereafter at a loss. According to SEBI, the inquiry into the incident would be concluded in six months, and this interim order was made based on the records that were accessible.
Since March 5, JM Financial’s shares have dropped by approximately 16 percent. Simultaneously, its market capitalization has decreased to Rs 7,670 crore.
