Now Reading: SEBI slashes routine inspections of market intermediaries
-
01
SEBI slashes routine inspections of market intermediaries
SEBI will reduce targeted inspections of market intermediaries for FY27 to about one-third of the previous year under a revamped framework announced on August 7. The regulator shifts to a risk-based and…
The Story in Brief
SEBI will reduce targeted inspections of market intermediaries for FY27 to about one-third of the previous year under a revamped framework announced on August 7. The regulator shifts to a risk-based and coordinated supervisory approach, discontinuing repetitive annual checks on compliant entities like Qualified Stock Brokers. Instead, it will focus on high-risk firms. Inspections of entities with multiple registrations will be conducted jointly. Shortlisting will be done quarterly, with higher weight on exchange alerts, investor complaints and social media inputs. The changes aim to strengthen oversight while easing compliance burdens.
The Indian Opinion
Critics may see fewer inspections as a regulatory rollback, but SEBI’s move is a pragmatic shift from checkbox audits to targeted surveillance. The real test will be whether the new quarterly shortlisting, backed by exchange alerts and investor complaints, identifies rogue intermediaries faster. If SEBI can demonstrate a tangible drop in misconduct while reducing compliance costs, the framework will vindicate itself. Otherwise, the 'ease of doing business' tag will ring hollow.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
