The Securities and Exchange Board of India has adopted a risk-based approach to inspections of market intermediaries from financial year 2026-27, including mandatory joint inspections of stock brokers and depository participants by stock exchanges and depositories. Reflecting these regular inspections, SEBI will reduce its own targeted inspection volume to approximately one-third of the previous financial year’s level and discontinue repetitive annual comprehensive inspections of compliant entities, particularly qualified stock brokers. SEBI will prioritize entities that repeatedly meet shortlisting parameters, carry high risk scores or trigger multiple exchange alerts. Shortlisting will occur quarterly, with greater weight placed on recent potential violations identified through exchange alerts, complaints and social media. Where feasible, SEBI departments will jointly inspect entities holding multiple intermediary registrations, while market intelligence and regional inputs will guide thematic inspections covering areas such as technical glitches, cyber incidents and stock brokers’ authorized persons.

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