JM Fin’s shares nosedive 19%

New Delhi: Shares of JM Financial on Wednesday tanked over 19 per cent after the Reserve Bank imposed restrictions on group firm JM Financial Products Ltd after finding that the company indulged in various manipulations. The stock tumbled 19.29 per cent to Rs77.10 on the BSE. At the NSE, it plummeted 18.75 per cent to Rs77.55. The company’s mcap declined by Rs 1,484.53 crore to Rs7,643.63 crore.

The Reserve Bank on Tuesday imposed restrictions on JM Financial Products Ltd after finding that the company indulged in various manipulations, including repeatedly helping a group of its own customers to bid for various IPOs by using loaned funds. In a major regulatory action, the central bank has barred the systemically important non-deposit-taking NBFC from providing any kind of financing against shares and debentures, including sanction and disbursal of loans against IPO of shares as well as against subscription to debentures.