JM Financial: Sebi initial probe points at Piramal Enterprises’ NCD

On Thursday, Sebi prohibited the parent company JM Financial from acting as the lead manager for any new debt public issue. Markets regulator Securities and Exchange Board of India in its routine examination of JM Financial found that the non-convertible debentures (NCDs) issue was floated by Piramal Enterprises in 2023. Though Sebi has not mentioned the name of the issuer, as per details provided in the Sebi’ order, it is clear that the NCD issue was of Piramal Enterprises, the Financial Express reported. In November 2023, Piramal Enterprises raised Rs 533 crore through the issue of NCDs. The base issue size was Rs 200 crore, with a green shoe option of up to Rs 800 crore, aggregating up to Rs 1,000 crore. JM Financial, AK Capital Services, Nuvama Wealth Management and Trust Investment Advisors were the merchant bankers to the issue. The issue opened on October 19, 2023, and closed on November 2, 2023.