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New Delhi: IIFL Finance and JM Financial Products (JMFPL) will undergo a special audit to further probe their regulatory breaches, as the Reserve Bank of India (RBI) has initiated the process for the appointment of auditors. The RBI has floated two separate tenders for the appointment of auditors for special audits of these two non-banking finance companies.

Audit firms empanelled by the Securities and Exchange Board of India (Sebi) for forensic audit can participate in the tendering process, and the last date for submission of bids is April 8, as per the tender document published by RBI.

The selected firms will be awarded work on April 12, 2024, as per the bid documents. Earlier this month, the RBI put a curb on these two entities for non-compliance of regulatory guidelines. The central bank barred IIFL Finance from sanctioning or disbursing gold loans after certain material supervisory concerns were observed in its gold loan portfolio.

The RBI had said an inspection of the company was carried out by it with reference to IIFL’s financial position as of March 31, 2023.

A day after, the Reserve Bank imposed restrictions on JM Financial Products following the 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. agencies

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  • Published On Mar 25, 2024 at 07:54 AM IST

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