JM Financial

Allegations: THE PRINCIPAL ALLEGATIONS ARE: JMFPL ALLEGEDLY FACILITATED IPO AND NCD SUBSCRIPTIONS USING LOANED FUNDS WITH INADEQUATE CREDIT UNDERWRITING AND VERY LOW MARGINS. JMFPL OPERATED CUSTOMERS' APPLICATION PROCESSES, DEMAT ACCOUNTS, AND BANK ACCOUNTS THROUGH POWERS OF ATTORNEY (POAS), EFFECTIVELY ACTING AS BOTH LENDER AND BORROWER, RAISING CONCERNS ABOUT REGULATORY COMPLIANCE AND CORPORATE GOVERNANCE.

Sanction: Cease and Desist

How it ended: Other

Detail: NOT APPLICABLE

Summary: within the space provided). RBI VIDE ITS ORDER DATED MARCH 5, 2024 HAD DIRECTED JMFPL TO CEASE AND DESIST, FROM DOING ANY FORM OF FINANCING AGAINST SHARES AND DEBENTURES INCLUDING SANCTION AND DISBURSAL OF LOAN AGAINST INITIAL PUBLIC OFFERING (IPO) OF SHARES AS WELL AS AGAINST SUBSCRIPTION TO DEBENTURES, TILL A SPECIAL AUDIT INSTITUTED BY RBI WAS COMPLETED. POST SUBMISSION OF RESPONSE BY JMFPL, RBI VIDE ITS LETTER DATED OCTOBER 18, 2024, LIFTED THE RESTRICTIONS IMPOSED BY IT ON JMFPL. HOWEVER, AS A CORRECTIVE MEASURE, JMFPL DECIDED TO DISCONTINUE ITS IPO BUSINESS (MATTER CLOSED).

Resolved: Oct 18, 2024

Allegations: SEBI HAD ISSUED A SHOW-CAUSE NOTICE DATED MAY 25, 2023 ("SCN") IN THE MATTER OF VOLUNTARY DELISTING OFFER BY ONE OF THE CLIENTS OF JM FINANCIAL LIMITED ("JMFL") TO CERTAIN ENTITIES, INCLUDING JMFL. IT WAS ALLEDGED IN THE SCN THAT JMFL FAILED TO EXERCISE DUE DILIGENCE, CARE AND PROFESSIONAL JUDGEMENT AS THE MANAGER TO THE DELISTING OFFER AND HENCE, HAVE ALLEGEDLY VIOLATED REGULATION 29(4) OF SEBI (DELISTING OF EQUITY SHARES) REGULATIONS, 2021 & REGULATION 13 READ WITH SCHEDULE III OF SEBI (MERCHANT BANKERS) REGULATIONS, 1992

Sanction: Other

How it ended: Settled

Detail: JMFL SETTLED WITH SEBI THE ADJUDICATION PROCEEDINGS INITIATED AGAINST IT, WITHOUT ADMITTING OR DENYING THE FINDINGS OF FACTS AND CONCLUSIONS OF LAW BY AGREEING TO PAY A SETTLEMENT AMOUNT OF INR. 15,00,000/- (APPROXIMATELY EQUIVALENT TO USD 18,000/-) TOWARDS THE SETTLEMENT TERMS.

Summary: within the space provided). JMFL HAD SUBMITTED ITS RESPONSE TO THE SCN AND HAD ALSO FILED A SETTLEMENT APPLICATION WITH SEBI IN THE MATTER. JMFL SETTLED WITH SEBI THE ADJUDICATION PROCEEDINGS INITIATED AGAINST IT VIDE THE SCN, WITHOUT ADMITTING OR DENYING THE FINDINGS OF FACTS AND CONCLUSIONS OF LAW BY AGREEING TO PAY A SETTLEMENT AMOUNT OF RS. 15,00,000/- (APPROXIMATELY EQUIVALENT TO USD 18,000/-) TOWARDS THE SETTLEMENT TERMS PURSUANT TO WHICH SEBI PASSED A SETTLEMENT ORDER DATED MAY 21, 2024 AND THE PROCEEDINGS INITIATED IN TERMS OF THE SCN, HAVE BEEN DISPOSED OF. (MATTER CLOSED)

Resolved: May 21, 2024

Allegations: JM FINANCIAL TRUSTEE COMPANY PRIVATE LIMITED ("JMFTCPL") WAS ALLEGED TO HAVE VIOLATED THE PROVISIONS OF CLAUSE 2 OF FIFTH SCHEDULE TO THE SEBI (MUTUAL FUNDS) REGULATIONS, 1996

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Detail: SEBI IMPOSED A MONETARY PENALTY OF INR 10,00,000/- (APPROXIMATELY EQUIVALENT TO USD 11,933/-) ON JMFTCPL AS PER SECTION 15HB OF THE SEBI ACT, 1992 WHICH HAS BEEN PAID BY JMFTCPL ON SEPTEMBER 4, 2024

Summary: within the space provided). SEBI ISSUED A SHOW-CAUSE NOTICE DATED NOVEMBER 15, 2022 TO JMFTCPL IN RESPECT OF TRANSACTIONS EXECUTED BY CERTAIN EMPLOYEES OF JM FINANCIAL ASSET MANAGEMENT LIMITED IN THE SCHEMES OF JM FINANCIAL MUTUAL FUND, WHICH WAS RESPONDED TO BY JMFTCPL. JMFTCPL IS THE TRUSTEE TO THE SCHEMES OF JM FINANCIAL MUTUAL FUND. POST THE SUBMISSIONS OF JMFTCPL, SEBI ISSUED AN ORDER ON JULY 31, 2024 IMPOSING A PENALTY OF INR 10,00,000/- (APPROXIMATELY EQUIVALENT TO USD 11,933/-) ON JMFTCPL AS PER SECTION 15HB OF SEBI ACT, 1992 FOR FAILING TO COMPLY WITH CLAUSE 2 OF FIFTH SCHEDULE TO SEBI (MUTUAL FUNDS) REGULATIONS, 1996. THE ABOVE PENALTY WAS PAID BY JMFTCPL ON SEPTEMBER 4, 2024. (MATTER CLOSED)

Resolved: Jul 31, 2024

Allegations: JM FINANCIAL ASSET MANAGEMENT LIMITED ("JMFAML") WAS ALLEGED TO HAVE ACTED IN CONTRAVENTION OF THE SEBI CIRCULAR DATED NOVEMBER 17, 2016 AND VIOLATED THE PROVISIONS OF CLAUSE 2 OF FIFTH SCHEDULE TO THE SEBI (MUTUAL FUNDS) REGULATIONS, 1996.

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Order

Detail: SEBI IMPOSED A MONETARY PENALTY OF INR 25,00,000/- (APPROXIMATELY EQUIVALENT TO USD 29,831/-) ON JMFAML AS PER SECTION 15E OF SEBI ACT, 1992 WHICH HAS BEEN PAID BY JMFAML ON SEPTEMBER 4, 2024.

Summary: within the space provided). SEBI ISSUED A SHOW-CAUSE NOTICE DATED NOVEMBER 15, 2022 TO JMFAML IN RESPECT OF TRANSACTIONS EXECUTED BY CERTAIN EMPLOYEES OF JMFAML IN THE SCHEMES OF JM FINANCIAL MUTUAL FUND, WHICH WAS RESPONDED TO BY JMFAML. POST THE SUBMISSIONS OF JMFAML, SEBI ISSUED AN ORDER ON JULY 31, 2024 IMPOSING A PENALTY OF INR 25,00,000/- (APPROXIMATELY EQUIVALENT TO USD 29,831/-) ON JMFAML AS PER SECTION 15E OF SEBI ACT, 1992 FOR FAILING TO COMPLY WITH THE PROVISIONS OF SEBI CIRCULAR DATED NOVEMBER 17, 2016 AND CLAUSE 2 OF FIFTH SCHEDULE TO SEBI (MUTUAL FUNDS) REGULATIONS, 1996. THE ABOVE PENALTY WAS PAID BY JMFAML ON SEPTEMBER 4, 2024. (MATTER CLOSED)

Resolved: Jul 31, 2024

Allegations: RBI VIDE ITS LETTER DATED JULY 05, 2024, ISSUED A SHOW CAUSE NOTICE IN RELATION TO AN INADVERTENT MISS OF DISCLOSURE OF A RELATED PARTY TRANSACTION IN ANNUAL REPORT PURSUANT TO PARAGRAPH 4.3(A) OF ANNEX XVI OF MASTER DIRECTION ­ NON​ BANKING FINANCIAL COMPANY ­ SYSTEMICALLY IMPORTANT NON-DEPOSIT TAKING COMPANY AND DEPOSIT TAKING COMPANY (RESERVE BANK) DIRECTIONS, 2016.

Sanction: Other

How it ended: Acceptance, Waiver & Consent(AWC)

Detail: NOT APPLICABLE

Summary: within the space provided). PURUSUANT TO PARAGRAPH 4.3(A) OF ANNEX XVI OF MASTER DIRECTION ­ NON​ BANKING FINANCIAL COMPANY ­ SYSTEMICALLY IMPORTANT NON­DEPOSIT TAKING COMPANY AND DEPOSIT TAKING COMPANY (RESERVE BANK) DIRECTIONS, 2016, RBI VIDE ITS LETTER DATED JULY 05, 2024, ISSUED A SHOW CAUSE NOTICE IN RELATION TO AN INADVERTENT MISS OF DISCLOSURE OF A RELATED PARTY TRANSACTION IN ANNUAL REPORT. JMFPL REPLIED TO THE SHOW CAUSE NOTICE STATING THAT THE SAID TRANSACTION HAS DISCLOSED IN ITS AUDITED FINANCIAL STATEMENTS UNDER THE RELATED PARTY TRANSACTIONS AND THAT THE MISSED DISCLOSURE OF RELATED PARTY TRANSACTION WAS PURELY ON THE GROUND OF INTERPRETATION, RBI VIDE ITS ORDER DATED MARCH 13, 2025 LEVIED A PENALTY OF RS. 3.10 LAKH ON JMFPL (MATTER CLOSED).

Resolved: Mar 13, 2025

Allegations: NSE MCSGFC, COMMITTEE VIDE ORDER DATED MARCH 03, 2025, HAS LEVIED PENALTY OF RS. 5,60,000/- ($6,384) FOR VIOLATION OBSERVED DURING ONSITE INSPECTION OF AUTHORIZED PERSON. WE HAVE SUBMITTED A REQUEST FOR REVERSAL OF THE PENALTY LEVIED.

Sanction: Other

Summary: within the space provided). NSE MCSGFC, COMMITTEE VIDE ORDER DATED MARCH 03, 2025, HAS LEVIED PENALTY OF RS. 5,60,000/- ($6,384) FOR VIOLATION OBSERVED DURING ONSITE INSPECTION OF AUTHORIZED PERSON. WE HAVE SUBMITTED A REQUEST FOR REVERSAL OF THE PENALTY LEVIED.

Allegations: JMFSL HAS BEEN REFERRED IN THE INTERIM EX PARTE ORDER DATED MARCH 7, 2024 PASSED BY SEBI AGAINST JM FINANCIAL LIMITED (JMFL) IN THE MATTER OF PUBLIC OF ISSUE OF CERTAIN DEBT SECURITIES. THE SAID CONFIRMATORY ORDER IMPOSED RESTRICTIONS ON JMFL TO UNDERTAKE ANY NEW MANDATE FOR PUBLIC ISSUE OF DEBT SECURITIES TILL MARCH 31, 2025 BUT CLARIFIED THAT JMFL CAN UNDERTAKE PUBLIC ISSUE OF EQUITY INSTRUMENTS.

Sanction: Disgorgement

How it ended: Settled

Detail: SETTLEMENT AMOUNT . RS. 191,60,599/- ($216,515) DISGORGEMENT AMOUNT: RS. . 1,33,35,239/- ($150,688)

Summary: within the space provided). JMFL HAS ADHERED TO THE SAID ORDERS. JMFSL MADE A VOLUNTARY SETTLEMENT APPLICATION UNDER THE SEBI (SETTLEMENT PROCEEDINGS) REGULATIONS, 2018. PURSUANT TO THE SAID APPLICATION, SEBI VIDE ITS ORDER DATED SEPTEMBER 19, 2025 (THE "SETTLEMENT ORDER") SETTLED THE PROCEEDINGS THAT MAY HAVE BEEN INITIATED AGAINST JMFSL IN THE SUBJECT MATTER UPON JMFSL MAKING PAYMENT OF THE SETTLEMENT AMOUNT OF RS. 191,60,599/- ($216,515) AND THE DISGORGEMENT AMOUNT OF RS. 1,33,35,239/- ($150,688), WITHOUT JMFSL ADMITTING OR DENYING THE FINDINGS OF FACTS AND CONCLUSIONS OF LAW. ADDITIONALLY, JMFSL ALSO AGREED TO VOLUNTARY DEBARMENT FROM ACTING AS A DISTRIBUTOR IN ANY PUBLIC ISSUE OF DEBT SECURITIES FOR A PERIOD OF 3 MONTHS FROM THE DATE OF THE SETTLEMENT ORDER, VIZ. SEPTEMBER 19, 2025.

Resolved: Sep 19, 2025

Allegations: NSE VIDE ITS LETTER DATED SEPTEMBER 5, 2019 HAS COMMUNICATED THE DECISION MADE BY THE MEMBER SELECTION COMMITTEE ("MSC") OF THE EXCHANGE AND LEVIED A PENALTY OF RS.5,00,000/- ($6950) FOR CONTINUED TO REMAIN CONNECTED TO THE FALLBACK / SECONDARY SERVER OF THE EXCHANGE THROUGH THE CO-LOCATION FACILITY PROVIDED DURING MAY 2012 TO JULY 2014. MATTER CLOSED

Sanction: Civil and Administrative Penalt(ies) /Fine(s)

How it ended: Settled

Detail: MONETARY FINE PAID RS. 5,00,000/- ($6950)

Summary: within the space provided). NSE VIDE ITS LETTER DATED SEPTEMBER 5, 2019 HAS COMMUNICATED THE DECISION MADE BY THE MEMBER SELECTION COMMITTEE ("MSC") OF THE EXCHANGE AND LEVIED A PENALTY OF RS.5,00,000/- ($6950) FOR CONTINUED TO REMAIN CONNECTED TO THE FALLBACK / SECONDARY SERVER OF THE EXCHANGE THROUGH THE CO-LOCATION FACILITY PROVIDED DURING MAY 2012 TO JULY 2014. MATTER CLOSED.

Resolved: Sep 5, 2019

Allegations: JMFPL HAD BEEN REFERRED IN THE ORDERS ISSUED BY SEBI AGAINST JM FINANCIAL LIMITED ("JMFL"), VIZ., AN INTERIM EX-PARTE ORDER DATED MARCH 7, 2024 AND CONFIRMATORY ORDER DATED JUNE 20, 2024 IN THE MATTER OF PUBLIC ISSUE OF CERTAIN DEBT SECURITIES.

Sanction: Other

How it ended: Settled

Detail: JMFPL MADE VOLUNTARY SETTLEMENT APPLICATION UNDER SEBI (SETTLEMENT PROCEEDINGS) REGULATIONS, 2018 IN RESPECT OF SEBI ORDERS DATED MARCH 7, 2024 AND JUNE 20, 2024 BY NEITHER ADMITTING NOR DENYING THE FINDINGS OF FACT AND CONCLUSIONS OF LAW. PURSUANT TO THE ABOVE APPLICATION, SEBI VIDE ITS ORDER DATED SEPTEMBER 19, 2025 SETTLED THE PROCEEDINGS THAT MAY HAVE BEEN INITIATED AGAINST JMFPL AFTER PAYMENT OF RS. 44,00,000/- ($49,900) AS SETTLEMENT AMOUNT. FURTHER, JMFPL AGREED FOR VOLUNTARY DEBARMENT FROM UNDERTAKING THE BUSINESS OF INITIAL PUBLIC OFFER FINANCING FOR A PERIOD OF 3 MONTHS FROM THE DATE OF SETTLEMENT ORDER.

Summary: within the space provided). JMFPL HAD BEEN REFERRED IN THE ORDERS ISSUED BY SEBI AGAINST JM FINANCIAL LIMITED ("JMFL"), VIZ., AN INTERIM EX-PARTE ORDER DATED MARCH 7, 2024 AND CONFIRMATORY ORDER DATED JUNE 20, 2024 IN THE MATTER OF PUBLIC ISSUE OF CERTAIN DEBT SECURITIES. JMFPL MADE VOLUNTARY SETTLEMENT APPLICATION UNDER THE SEBI (SETTLEMENT PROCEEDINGS) REGULATIONS, 2018. PURSUANT TO THE ABOVE APPLICATION, SEBI VIDE ITS ORDER DATED SEPTEMBER 19, 2025 SETTLED THE PROCEEDINGS THAT MAY HAVE BEEN INITIATED AGAINST JMFPL IN THE MATTER (MATTER CLOSED).

Resolved: Sep 19, 2025

Allegations: NSE VIDE ITS LETTER DATED MAY 13, 2024 HAS LEVIED A PENALTY OF RS. 6,08,000/- ($7,296) FOR OBSERVATIONS RAISED IN INSPECTION CONDUCTED FOR THE PERIOD OCTOBER 01, 2022 TO SEPTEMBER 30, 2023.

Sanction: Other

How it ended: Settled

Detail: NSE VIDE ITS LETTER DATED MAY 13, 2024 HAS LEVIED A PENALTY OF RS. 6,08,000/- ($7296) FOR OBSERVATIONS RAISED IN INSPECTION CONDUCTED FOR THE PERIOD OCTOBER 01, 2022 TO SEPTEMBER 30, 2023. NSE MEMBER COMMITTEE VIDE ITS LETTER DATED DECEMBER 03, 2025, HAS DECIDED TO WAIVE OFF THE PENALTY OF RS. 1,00,000/- ($1197) ONLY LEVIED WITH RESPECT TO INSPECTION OF BRANCHES / REGISTERED AUTHORIZED PERSONS. MATTER CLOSED.

Summary: within the space provided). NSE VIDE ITS LETTER DATED MAY 13, 2024 HAS LEVIED A PENALTY OF RS. 6,08,000/- ($7,296) FOR OBSERVATIONS RAISED IN INSPECTION CONDUCTED FOR THE PERIOD OCTOBER 01, 2022 TO SEPTEMBER 30, 2023. NSE MEMBER COMMITTEE VIDE ITS LETTER DATED DECEMBER 03, 2025, HAS DECIDED TO WAIVE OFF THE PENALTY OF RS. 1,00,000/- ($1197)) ONLY LEVIED WITH RESPECT TO INSPECTION OF BRANCHES / REGISTERED AUTHORISED PERSONS (APS). MATTER CLOSED.

Resolved: Dec 3, 2025

Allegations: NSE VIDE ITS INVOICE DATED OCTOBER 17, 2023, HAS LEVIED PENALTY OF RS.5,41,850/- ($6502) AS NSE_MCSGFC COMMITTEE-MATCH AND REVERSAL OF TRADE (VINOD SOMANI HUF & BEENA SOMANI).IN ONE OF THE CLIENTS. MATTER CLOSED.

Sanction: Other

How it ended: Settled

Detail: NSE VIDE ITS INVOICE DATED OCTOBER 17, 2023, HAS LEVIED PENALTY OF RS.5,41,850/- ($6502) AS NSE_MCSGFC COMMITTEE-MATCH AND REVERSAL OF TRADE (VINOD SOMANI HUF & BEENA SOMANI).IN ONE OF THE CLIENTS. MATTER CLOSED.

Summary: within the space provided). NSE VIDE ITS INVOICE DATED OCTOBER 17, 2023, HAS LEVIED PENALTY OF RS.5,41,850/- ($6502) AS NSE_MCSGFC COMMITTEE-MATCH AND REVERSAL OF TRADE (VINOD SOMANI HUF & BEENA SOMANI).IN ONE OF THE CLIENTS. MATTER CLOSED.

Resolved: Oct 17, 2023

Allegations: MCX VIDE EMAIL DATED DECEMBER 26, 2025, HAS LEVIED A PENALTY OF RS. 6,34,900 ($7047) FOR THE ABNORMAL TRADES EXECUTED IN CRUDEOILM OPTION CONTRACTS BY ONE OF THE CLIENT. MATTER CLOSED.

Sanction: Other

How it ended: Settled

Detail: MONETARY FINE - RS. 6,34,900/- ($7047)

Summary: within the space provided). MCX VIDE EMAIL DATED DECEMBER 26, 2025, HAS LEVIED A PENALTY OF RS. 6,34,900 ($7047) FOR THE ABNORMAL TRADES EXECUTED IN CRUDEOILM OPTION CONTRACTS BY ONE OF THE CLIENT. MATTER CLOSED.

Resolved: Dec 26, 2025

Allegations: PLEASE REFER TO DETAILS IN POINT 14 OF PART II OF CIVIL JUDICIAL ACTION DISCLOSURE REPORTING PAGE (ADV)

Sanction: Other

How it ended: Judgment Rendered

Detail: RELIEF GRANTED BY THE COURT. ALSO REFER TO DETAILS IN POINT 14 OF PART II OF CIVIL JUDICIAL ACTION DISCLOSURE REPORTING PAGE (ADV).

Resolved: Mar 30, 2010

Allegations: THE CLIENT NITIN JOSHI FILED AN ARBITRATION CLAIM AGAINST THE COMPANY AT NATIONAL STOCK EXCHANGE OF INDIA LIMITED, DELHI CLAIMING AN AMOUNT OF RS.1,47,065/-. THE ISSUE RELATED TO AUCTION SETTLEMENT OF 1300 SHARES OF UPL LIMITED ARISING OUT OF NON-FULFILMENT OF OBLIGATION UNDER THE OPTION CONTRACT HAVING STRIKE PRICE OF 729/- OF EXPIRY DATED 24.02.2022

Sanction: Other

How it ended: Dismissed

Detail: THE APPEAL FILED BY THE COMPANY WAS DISMISSED BY THE DISTRICT COURT

Resolved: Jul 7, 2025

Allegations: THE CLIENT NAVEEN KUMAR DAHIYA FILED AN ARBITRATION CLAIM AGAINST THE COMPANY AT NATIONAL STOCK EXCHANGE OF INDIA LIMITED, DELHI CLAIMING AN AMOUNT OF RS.12,39,000 ($14400) ON ACCOUNT OF UNAUTHORIZED TRADE/ SQUARING OFF HIS OPEN POSITIONS.

Sanction: Other

How it ended: Dismissed

Detail: THE COMPANY'S APPEAL FILED IN DISTRICT COURT CHALLENGING THE AWARD WAS DISMISSED

Resolved: Jul 21, 2025