What action did the Reserve Bank of India (RBI) take

Solution

• The Reserve Bank of India has directed regulated entity JM Financial Products Ltd. (JMFPL) to cease and desist, with immediate effect, from doing any form of financing against shares and debentures, including sanction and disbursal of loans against Initial Public Offering (IPO) of shares or against subscription to debentures as the entity has been found violating regulatory guidelines. • According to the RBI, It was observed that the company repeatedly helped a group of its customers to bid for various IPO and NCD offerings by using loaned funds. • The credit underwriting was found to be perfunctory, and financing was done against meagre margins. Learn Along About RBI Founded: 1 April 1935                                    Headquarters: Mumbai                                     Governor: Shaktikanta Das