At the NSE, it plummeted 18.75 per cent to Rs 77.55.
The company's market capitalisation (mcap) declined by Rs 1,484.53 crore to Rs 7,643.63 crore.
The Reserve Bank on Tuesday imposed restrictions on JM Financial Products Ltd after finding that the company indulged in various manipulations, including repeatedly helping a group of its own customers to bid for various IPOs by using loaned funds.
In a major regulatory action, the central bank has barred the systemically important non-deposit-taking NBFC from providing any kind of financing against shares and debentures, including sanction and disbursal of loans against
The restrictions are with immediate effect.
Besides directing the entity to "cease and desist" from financing activities, the
JM Financial Products has been allowed to continue to service its existing loan accounts through the usual collection and recovery process.
In a statement, the RBI said the actions were "necessitated due to certain serious deficiencies observed in respect of loans sanctioned by the company for IPO financing as well as NCD (Non-Convertible Debentures) subscriptions".
JM Financial Products offers a broad suite of loan products. Broadly, it operates under five verticals -- capital market financing, retail mortgage financing, bespoke financing, financial institution financing, and real estate financing, as per its website.