JM Financial Ltd. informed the exchanges on Tuesday, August 6, that the special audit initiated by the Reserve Bank of India (RBI) on its subsidiary JM Financial Products Ltd. (JMFPL) is completed and remedial measures are now being put in place.

The Reserve Bank of India, on March 5, 2024 had directed JM Financial Products Ltd., a material subsidiary of JM Financial to cease and desist from doing any form of financing against shares and debentures, including sanctions and disbursals of loans against IPOs as well as subscription to debentures.

However, it was allowed to continue servicing its existing loan accounts through the standard collection and recovery procedures.

“During the quarter, the special audit instituted by the Reserve Bank of India was completed and JMFPL has submitted the response on August 5, 2024 on the remedial measures to the RBI,” JM Financial said in its notes to account as part of its June quarter earnings.

For the June quarter, JM Financial reported a net profit of ₹187 crore, which is 6% higher than the same quarter last year.

Net Interest Income for the quarter declined by 15.2% for the quarter to ₹184 crore.

Shares of JM Financial ended 0.9% lower on Tuesday at ₹97.98. The stock is flat for 2024 and is down 10% in the last six months.