JM Financial Home Loans CEO Manish Sheth has indicated that homebuyers should not anticipate new policy announcements or subsidies during the upcoming festive season, citing the strong performance of existing housing schemes.

Current Housing Schemes Performance

Sheth highlighted the success of the Pradhan Mantri Awas Yojana (PMAY) 2.0, under which 8.56 lakh homes have been sanctioned. The government has also launched the Angikaar 2025 campaign to increase awareness among eligible beneficiaries of the scheme.

State-Level Housing Initiatives

Several state-level programs are expected to yield results in the coming months:

• Maharashtra Housing Policy 2025
• Delhi Development Authority's new schemes

Mid-Segment Housing Demand

The demand for mid-segment housing has seen a significant uptick, tripling over the past four years. This surge is attributed to India's expanding middle class, which is projected to reach 600 million by 2030.

Potential Cost Reduction in Construction

A potential GST reduction on cement from 28% to 18% could lead to a decrease in construction costs:

JM Financial Home Loans Growth Targets

JM Financial Home Loans has set ambitious growth targets for its loan book:

Recent Corporate Update

In a recent corporate filing, JM Financial Limited announced the allotment of 53,750 equity shares to eligible employees under their Employee Stock Option Scheme. This allotment has increased the company's paid-up equity share capital to ₹95,62,16,090.00, representing 95,62,16,090 equity shares of ₹1 each.

As the festive season approaches, the housing market appears to be relying on the momentum of existing schemes and initiatives rather than anticipating new policy interventions. The focus seems to be on leveraging current programs and capitalizing on the growing demand in the mid-segment housing sector.

JM Financial Limited and its subsidiaries have reached a settlement with the Securities and Exchange Board of India (SEBI) over alleged irregularities in managing Piramal Enterprises' public Non-Convertible Debenture (NCD) issue. The settlement, totaling ₹3.92 crore, involves three entities of the JM Financial Group.

Settlement Details

JM Financial Limited, JM Financial Services Limited, and JM Financial Products Limited have agreed to pay the following amounts:

Allegations and Scheme

SEBI's investigation revealed that JM Financial Products Limited (JMFPL) allegedly provided loans at 10% interest to 1,008 applicants to purchase NCDs with lower coupon rates of 9-9.35%. The scheme involved 11.34 lakh NCDs, with JMFPL subsequently buying back the NCDs at predetermined higher prices on the listing day, providing guaranteed profits to the applicants.

The JM Financial Group entities are alleged to have generated ₹1.99 crore in net gains through shared commissions and incentives from the issuer.

Voluntary Debarments

As part of the settlement, the companies have accepted voluntary debarments from various debt securities activities:

• JM Financial Limited: Debarred from acting as a lead manager in any public issue of debt securities for three months from the date of the settlement order.
• JM Financial Services Limited: Debarred from acting as a distributor in any public issue of debt securities for three months.
• JM Financial Products Limited: Debarred from undertaking initial public offer financing for three months.

Settlement Terms

The settlement was reached without the entities admitting or denying the violations. SEBI has stated that it will not initiate any enforcement action against the applicants for the said violations, subject to compliance with the settlement terms.

Impact on JM Financial Limited

According to the company's disclosure, there is no material impact on the financial, operational, or other activities of JM Financial Limited pursuant to the settlement order.

The settlement order, while resolving the immediate regulatory concerns, underscores the importance of maintaining strict compliance with securities regulations in the management of public issues. It also highlights SEBI's ongoing efforts to ensure fair practices in the securities market.

Investors and market participants will likely monitor JM Financial Group's activities closely in the coming months, particularly as the entities serve out their voluntary debarment periods in their respective areas of operation.