New Delhi, March 25 The market regulator, Sebi, on Wednesday allowed members of the Institute of Cost Accountants of India to conduct the annual audits of research analysts and investment advisors, a move that will expand the pool of eligible professionals.
Previously, only members of the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India were permitted to carry out such audits.
"Given the representation from the Institute of Cost Accountants of India and considering the recognition of Cost Accountants to conduct annual audits of RAs/IAs under the RA/IA Regulations, it has been decided to modify the aforementioned paragraph to clarify the eligibility of members of the Institute of Cost Accountants of India to conduct annual audits of RAs/IAs," Sebi said in similar-worded circulars.
Accordingly, Sebi has amended its Master Circular for Research Analysts/Investors Advisors dated February 6, 2026, to include cost accountants as eligible professionals for conducting compliance audits.
Under the revised framework, research analysts and investment advisors are required to conduct an annual audit of their compliance with Sebi regulations within six months from the end of each financial year.
The audit report must be submitted to Sebi or the respective supervisory bodies – Research Analyst Administration and Supervisory Body (RAASB) or Investment Advisers Administration and Supervisory Body (IAASB) – within one month of completion, and no later than October 31 for the preceding financial year.
In addition, research analysts are required to publish the status of the compliance audit report on their websites and disclose any adverse findings along with corrective actions, besides sharing the report with their clients.
For investment advisors, Sebi has also clarified that they must maintain an annual certificate confirming compliance with client-level segregation requirements, issued by a member of ICAI, ICSI or ICMAI, within six months of the financial year-end as part of the compliance audit.
The circulars come into immediate effect.
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