JM Financial has received a settlement order from SEBI, resolving a matter stemming from a prior regulatory review related to Non-Convertible Debentures (NCDs) issued in 2023. The order, dated September 19, 2025, addresses concerns related to the company, JM Financial Services, and JM Financial Products. The company has agreed to certain settlement terms, including financial payments and voluntary restrictions on specific business activities.
Resolution of Regulatory Matter
JM Financial announced the receipt of a settlement order from SEBI on September 22, 2025, related to a regulatory review initiated in 2024. The review concerned potential irregularities in Non-Convertible Debenture (NCD) issuances. The settlement aims to resolve concerns without admission or denial of findings.
Key Entities Involved
The settlement order encompasses JM Financial Limited, JM Financial Services Limited (JMFSL), and JM Financial Products Limited (JMFPL). These entities collectively addressed the regulatory concerns through the settlement process.
Settlement Terms
The settlement includes financial payments made by each entity. JM Financial Limited will pay ₹1,56,27,512, JM Financial Services Limited will pay ₹1,91,60,599, and JM Financial Products Limited will pay ₹44,00,000. Additionally, JM Financial Limited will disgorge ₹1,22,35,849, and JM Financial Services Limited will disgorge ₹1,33,35,239. JMFPL will not be required to disgorge funds.
Business Restrictions
As part of the settlement, JM Financial Limited has voluntarily agreed to certain business restrictions. The company will be debarred from acting as a lead manager in any public issue of debt securities. These restrictions will be in place for a specified period as outlined in the settlement order.
Background of the Review
The regulatory review originated from an examination of NCD issuances in 2023, specifically focusing on a Piramal Enterprises Limited (PEL) issue. Concerns arose regarding individual investors selling debt securities shortly after allotment, leading to a sharp decline in retail ownership. An interim ex-parte order was issued on March 7, 2024, followed by a confirmatory order on June 20, 2024.
Source: BSE
