The Bombay Stock Exchange (BSE) on May 04, 2026, has issued guidelines for the annual compliance audit requirement.
In reference to SEBI vide Master Circular dated February 06, 2026, has prescribed detailed requirements regarding annual compliance audit for Investment Advisers (IAs) under the SEBI (Investment Advisers) Regulations, 2013. The circular also introduces a standardized format for the annexure to the audit report for FY 2025–26 and outlines the process for submission through a dedicated portal.
• IAs are required to conduct an annual compliance audit covering all provisions of the IA Regulations and related circulars.
• The audit must be completed within six months from the end of the financial year, and the report must be submitted to IAASB/SEBI within one month from the date of the audit report.
• Adverse audit findings, if any, along with action taken and approval from the IA/management, must be reported within one month of the audit report and not later than October 31 each year.
• IAs must obtain an annual certificate from ICAI/ICSI/ICMAI members confirming compliance with client-level segregation, forming part of the audit.
• IAs are required to publish the compliance audit status and any adverse findings along with action taken on their website and also share the report with clients.
• A standardized annexure format for the audit report for FY 2025–26 has been introduced, requiring detailed provision-wise compliance reporting.
• SEBI is developing a portal for submission of audit reports, annexures, segregation certificates, and action taken reports; only portal-based submissions will be accepted (email submissions will not be considered).
• IAs can submit reports either through an auditor via the system or directly, as per the prescribed process flow.
• Existing IA login credentials will be used for portal access; no new registration is required.
[Notice No. 20260504-20]
