The Securities and Exchange Board of India (SEBI) issued a circular amending its Master Circular for Investment Advisers to clarify that members of the Institute of Cost Accountants of India are eligible to conduct the annual audit of registered Investment Advisers (IAs) for compliance with the SEBI (Investment Advisers) Regulations, 2013 and related circulars. Under the revised Master Circular provisions, the annual audit may be conducted by a member of the Institute of Chartered Accountants of India, the Institute of Company Secretaries of India, or the Institute of Cost Accountants of India, and must be completed within six months from the end of each financial year. IAs must submit the audit report and any adverse findings, along with actions taken and approvals (by the individual IA or the management of a non-individual IA), within one month of the audit report date and no later than 31 October each year for the previous financial year. SEBI also updated the record-keeping requirement for an annual certificate confirming compliance with client-level segregation requirements under Regulation 22, which may now be obtained from a member of ICAI, ICSI or ICMAI (or an auditor) within six months of the financial year-end and will form part of the compliance audit. The provisions apply from the date of issue of the circular.
Securities & Exchange Board of India 2026-03-25
Securities and Exchange Board of India allows cost accountants to conduct annual compliance audits for investment advisers
SEBI amended its Master Circular for Investment Advisers, allowing members of the Institute of Cost Accountants of India to conduct annual audits for SEBI compliance. These audits, due within six months of the financial year-end, can also be conducted by members of the Institute of Chartered Accountants of India or the Institute of Company Secretaries of India. SEBI also updated record-keeping requirements for compliance with client-level segregation under Regulation 22.