The SEBI has amended Regulation 10(6) to establish a fixed auditor tenure of five years for InvITs, disallowing shorter terms. This regulation aims to enhance accountability and continuity in the auditing process.
SEBI Regulation Establishes Fixed Auditor Tenure for InvITs
The Securities and Exchange Board of India (SEBI) has amended Regulation 10(6) concerning the auditor tenure for Infrastructure Investment Trusts (InvITs). The revised regulation mandates an auditor tenure of five years and bars shorter initial terms.
This initiative is part of SEBI's efforts to ensure consistent and thorough auditing processes across InvITs. By establishing a fixed tenure, SEBI aims to enhance transparency and accountability within these investment structures. The regulation intends to mitigate concerns regarding auditor independence and alignment with investor interests.
Practitioners in the field should be aware that this change affects compliance requirements for existing and new InvITs. Legal advisors will need to ensure that their clients adhere to the updated auditor appointment practices as stipulated in the new regulations.
Citations
- SEBI Reg. 10(6) (2023) SEBI Notifications
