The Reserve Bank of India (RBI) has taken action against IIFL Finance Ltd and JM Financial Products Ltd (JMFPL) for non-compliance with regulatory guidelines. As a result, the RBI has initiated the process of appointing auditors to conduct a special audit of both companies to further investigate their regulatory breaches [09f4125e].
The RBI has issued separate tenders for the appointment of auditors for IIFL Finance and JM Financial Products. The deadline for submitting bids is April 8, and the selected firms will be awarded the work on April 12, 2024. This special audit is expected to provide a detailed examination of the companies' operations and shed light on the extent of their regulatory breaches [09f4125e].
Earlier this month, the RBI imposed restrictions on IIFL Finance and JM Financial Products due to serious deficiencies observed in their operations. IIFL Finance was prohibited from sanctioning or disbursing gold loans due to concerns about its gold loan portfolio. JM Financial Products, on the other hand, was restricted from providing financing against shares and debentures due to various manipulations, including using loaned funds to help its own customers bid for IPOs. These actions were taken by the RBI to address the regulatory breaches and ensure compliance with the guidelines [09f4125e].