Shares of JM Financial plummeted 10 per cent on Monday, days after Sebi barred the company from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms.

The stock of JM Financial tumbled 9.78 per cent and 9.77 per cent to settle at Rs 79.35 each on NSE and BSE.

In volume trade, 1.80 crore equity shares were traded on NSE, while 13.59 lakh shares were traded on the BSE during the day.

The 30-share BSE Sensex declined by 616.75 points or 0.83 per cent to settle at 73,502.64, while NSE Nifty slumped by 160.90 points to close at 22,332.65.

Last Thursday, Sebi barred JM Financial from accepting new mandates to act as a lead manager for the public issue of debt securities, for flouting regulatory norms.

However, in the case of existing mandates, JM Financial can continue to act as a lead manager for the public issue of debt securities for a period of 60 days, Sebi said in its interim order. The regulator’s order came days after the Reserve Bank of India (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 (IPO).

The Sebi’s directive came after the markets regulator undertook a routine examination of the public issues of Non-Convertible Debentures (NCD) during 2023. The investigation focused on the activities of JM Financial and its related entities in a particular debt issue.

After being barred from accepting new mandates by Sebi, JM Financial said it would fully cooperate with the capital markets regulator in its investigation into the public issue of debt securities.