Since the Reserve Bank of India (RBI) has started the process of appointing auditors, IIFL Finance and JM Financial Products (JMFPL) will be subject to a special audit to look into their regulatory violations in extra detail. In order to select auditors for specific audits of these two non-banking financial entities, the RBI has released two separate bids.

According to the tender document released by RBI, audit firms that have been empanelled by the Securities and Exchange Board of India (Sebi) for forensic audit are eligible to participate in the bidding process. The deadline for bid submission is April 8.

On April 12, 2024, the chosen companies will get work, in accordance with the bid papers. These two organizations were placed on hold by the RBI earlier this month due to their failure to follow regulatory rules. Following the identification of several significant supervisory issues in its gold loan portfolio, the central bank prohibited IIFL Finance from authorizing or disbursing gold loans.

According to the RBI, an examination of the business was conducted in relation to IIFL's financial standing as of March 31, 2023.

The Reserve Bank placed limitations on JM Financial Products the next day when it was discovered that the business engaged in a number of manipulations, including often lending cash to a group of its own clients so they could bid on several initial public offerings (IPOs).