JM Financial shares rise 6% in early deals, here's why

Shares of JM Financial Ltd rose over 6% in early deals after after the  Reserve Bank of India (RBI) lifted the restrictions on its subsidiary, JM Financial Products Ltd, regarding financing against shares and debentures.JM Financial stock climbed 6.39% to Rs 168.85 against the previous close of Rs 158.70 . Market cap of the firm stood at Rs  15,865 crore. 

The stock has gained 146% in two years and risen 90% in a year. Total 7.32 lakh shares of the bourse changed hands amounting to a turnover of Rs 13.25 crore on BSE today.  

In terms of technicals, the relative strength index (RSI) of MCX stands at 67, signaling it's trading neither in the overbought  nor in the oversold zone. JM Financia shares are trading higher than the 20 day, 30 day 50 day, 100 day, 150 day and 200 day moving averages.

The restrictions were removed with immediate effect through a letter dated October 18, 2024.

In March 2024, RBI barred JM Financial Products Ltd from providing any form of financing against shares and debentures, including sanction and disbursal of loans against initial public offering, with immediate effect

JM Financial Products was directed 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 and against subscription to debentures.

The banking regulator said the action was necessitated due to certain serious deficiencies observed concerning loans sanctioned by the company for IPO financing and NCD subscriptions.