New Delhi: Big news has come about the giant investment banking firm JM Financial. The Reserve Bank of India has lifted the ban imposed on it. JM Financial Services Limited said in an exchange filing late on Friday that the company is allowed to provide financing in exchange for shares and debentures in compliance with all applicable laws and regulations with immediate effect. After which this stock is in focus. In such a situation, there is every possibility of a rise in it on Monday.
 

The ban was imposed in March

In fact, in March, the Reserve Bank of India had banned the company from giving loans based on shares and debentures, which included approval and disbursement of loans based on initial public offering (IPO) of shares and subscription of debentures, which is the leading business of the brokerage-led non-banking finance company.

 

RBI had found some serious deficiencies

The central bank had said in its order that the ban was imposed after observing some serious deficiencies in the loans issued by the company for IPO financing and non-convertible debenture subscription. In a press release issued by RBI, it was said that the company repeatedly helped its group of customers to bid for several IPOs and NCD offerings using the loan amount.

 

The company acted as both the lender and the borrower

Credit underwriting was found to be careless, and financing was done on thin margins. Applications for subscription, demat accounts, and bank accounts were all handled by the company using power of attorney (POA) and master agreements obtained from these clients, without their involvement in the latter. Thus, the company had acted as both lender and borrower in many cases.

There is a boom coming on Monday!

Let us tell you that on Friday, the shares of JM Financial closed at the level of 159.60, up 2.3 percent. During the last one month, this stock has given good profits to its investors during the market decline. During this period, it has registered a growth of more than 26 percent. At the same time, investors have got a record return of more than 95 percent in a period of 6 months, it has given a profit of 83 percent in one year. At the same time, after this decision of RBI, there is every possibility of a rise in the shares on Monday as well.