Circular no. HO/38/12/12(1)2026-MIRSD-SEC-FATF/I/7933/2026; Dated: 25.03.2026
The Securities and Exchange Board of India has amended its Master Circular for Research Analysts (RAs) and Investment Advisers (IAs) dated February 6, 2026, to expand the scope of professionals eligible to conduct compliance audits.
1. Key Update
- Members of the Institute of Cost Accountants of India are now permitted to conduct annual compliance audits for RAs and IAs
- Cost accountants have been formally recognised as eligible audit professionals alongside existing categories
2. Compliance Requirement
- RAs and IAs must conduct an annual audit of their compliance framework
- The audit must be completed within 6 months from the end of each financial year
3. Significance of the Amendment
- Expands the pool of qualified professionals for compliance audits
- Enhances ease of doing business for intermediaries
- Strengthens regulatory oversight and audit quality through broader professional participation
4. What This Means for Market Participants
- Research Analysts and Investment Advisers now have greater flexibility in appointing auditors
- Cost accountants can play a more active role in financial regulatory compliance and governance
- The move aligns with SEBI’s focus on robust compliance frameworks and accountability
Click Here To Read The Full Circular
The post SEBI Allows Cost Accountants to Audit RAs and IAs appeared first on Taxmann Blog.
