Shares of JM Financial Ltd crashed 10% lower on 11 March after the Securities and Exchange Board (SEBI) barred the company from taking any new mandate for acting as a lead manager for any public issue of debt securities.

The company received an interim order on 7 March from SEBI but said that the company can continue to act as a lead manager for the public issue of debt securities for a period of 60 days from the date of the order.

SEBI said that the order was based on the material available on record and that the investigation into this matter would be completed in six months.

The order came a few days after the Reserve Bank of India (RBI) barred JM Finance Products from providing loans against shares and debentures, including disbursal and sanction loans against initial public offering of shares, effective immediately.

The action was taken on 5 March after observing certain serious deficiencies in the company’s loan process.

At 3:30 pm, the shares of JM Financial closed 9.78% lower at Rs 79.35 on NSE.