SEBI Expands Audit Eligibility to Cost Accountants

SEBI has broadened the eligibility for conducting annual audits of research analysts and investment advisers by allowing members of the Institute of Cost Accountants of India. This move aims to expand the pool of eligible professionals for auditing, previously limited to the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India.

The Securities and Exchange Board of India (SEBI) has announced a significant update, permitting members of the Institute of Cost Accountants of India to conduct annual audits of research analysts and investment advisers. This decision is aimed at broadening the pool of professionals eligible to carry out compliance audits, previously restricted to members of the Institute of Chartered Accountants and the Institute of Company Secretaries.

In its latest circulars, SEBI confirmed the amendment of its Master Circular for Research Analysts and Investors Advisors, effective immediately. This modification will require research analysts and investment advisers to complete their compliance audits within six months of the financial year-end, and to submit their reports promptly to either SEBI or the relevant supervisory bodies by October 31.

Additionally, SEBI mandates that research analysts publish their audit status online and disclose any adverse findings along with corrective measures. Investment advisers must also obtain an annual compliance certificate for client segregation requirements, further ensuring transparency and adherence to regulations.

(With inputs from agencies.)