Sebi widens auditor pool for investment advisers, research analysts

Regulator allows cost accountants to conduct compliance audits, easing capacity constraints and expanding flexibility for investment advisers and research analysts

The Securities and Exchange Board of India (Sebi) has expanded the pool of professionals eligible to conduct annual compliance audits of investment advisers (IAs) and research analysts (RAs), allowing members of the Institute of Cost Accountants of India (ICMAI) to undertake such audits.

 

In two separate circulars issued on Wednesday, the regulator amended provisions in its master circulars for investment advisers and research analysts to formally include cost accountants alongside chartered accountants and company secretaries.

 

The move follows representations from the Institute of Cost Accountants of India (ICAI) and aligns with existing regulatory provisions that already recognise cost accountants for such audits.

 

The changes are expected to ease capacity constraints in the audit ecosystem while providing regulated entities greater flexibility in meeting compliance requirements, without altering the underlying audit framework.

 

Both circulars take effect immediately.