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SEBI Expands Audit Eligibility to Include Cost Accountants for RAs and IAs
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The Securities and Exchange Board of India (SEBI) has taken a significant step towards strengthening the audit ecosystem by expanding the category of professionals eligible to conduct annual audits of Research Analysts (RAs) and Investment Advisers (IAs). Through a recent regulatory update, SEBI has allowed members of the Institute of Cost Accountants of India (ICMAI) to undertake these audits, thereby increasing the availability of qualified professionals and improving operational efficiency within the compliance framework.
Until now, the responsibility of conducting such audits was restricted to members of the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI). This limitation often resulted in a narrower pool of eligible auditors. By including cost accountants, SEBI has not only widened the professional base but also introduced greater flexibility for entities in selecting auditors, which is expected to ease compliance processes and reduce dependency on limited resources.
This decision has been taken after considering representations made by the Institute of Cost Accountants of India, highlighting the expertise and capability of its members in areas such as financial analysis, cost evaluation, and regulatory compliance. SEBI’s move reflects its recognition of the professional competence of cost accountants and their ability to effectively carry out audits in line with the requirements prescribed under the RA and IA Regulations.
Accordingly, SEBI has issued necessary clarifications through its circulars, formally recognizing ICMAI members as eligible to conduct annual audits of Research Analysts and Investment Advisers. This development is expected to enhance the overall quality of audits, promote professional inclusivity, and support a more robust and efficient regulatory environment in the securities market.
Until now, the responsibility of conducting such audits was restricted to members of the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI). This limitation often resulted in a narrower pool of eligible auditors. By including cost accountants, SEBI has not only widened the professional base but also introduced greater flexibility for entities in selecting auditors, which is expected to ease compliance processes and reduce dependency on limited resources.
This decision has been taken after considering representations made by the Institute of Cost Accountants of India, highlighting the expertise and capability of its members in areas such as financial analysis, cost evaluation, and regulatory compliance. SEBI’s move reflects its recognition of the professional competence of cost accountants and their ability to effectively carry out audits in line with the requirements prescribed under the RA and IA Regulations.
Accordingly, SEBI has issued necessary clarifications through its circulars, formally recognizing ICMAI members as eligible to conduct annual audits of Research Analysts and Investment Advisers. This development is expected to enhance the overall quality of audits, promote professional inclusivity, and support a more robust and efficient regulatory environment in the securities market.
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