SEBI Allows Cost Accountants to Conduct Annual Audits of Investment Advisers

SEBI Allows Cost Accountants to Conduct Annual Audits of Investment Advisers

The Securities and Exchange Board of India (SEBI) has released a circular modifying its Master Circular for Investment Advisers to include cost accountants as eligible members to conduct annual audits of investment advisers.

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This decision is followed by representations from the Institute of Cost Accountants of India (ICMAI). Therefore, considering the recognition of cost accountants to conduct annual audits of IAs, SEBI has allowed cost accountants to be eligible for conducting the annual audit of IAs.

Until now, the investment advisers were required to get audited by the members of the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI). However, with the latest update, a cost accountant is also allowed to conduct the audit of investment advisers.

The main objective of this audit is to ensure compliance with the provisions of SEBI (Investment Advisers) Regulations, 2013 and the related circulars.

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Accordingly, SEBI has replaced paragraph 31.2 of Chapter VII of the Master Circular for Investment Advisers dated February 6, 2026.

The changes are applicable from the date of this circular, i.e., March 25, 2026.