SEBI has simplified the process for inspecting market intermediaries by adopting a risk-based framework, reducing frequency and enhancing efficiency. This change aims to streamline regulatory oversight for the financial year 2026-27.
SEBI Introduces Risk-Based Inspections for Market Intermediaries
The Securities and Exchange Board of India (SEBI) has announced a new risk-based framework aimed at streamlining the inspection process for market intermediaries in the financial year 2026-27. This move is part of SEBI's initiative to enhance regulatory compliance while minimizing the disruption caused by frequent inspections.
The revised inspection approach includes joint inspections and a careful selection of intermediaries based on risk assessments, allowing for a more targeted regulatory oversight. By reducing the frequency of inspections, SEBI is expected to foster a more conducive environment for operational efficiency in the market.
For legal practitioners advising market intermediaries, understanding these changes in inspection procedures will be critical. Clients can be better prepared for upcoming inspections by aligning their compliance practices with SEBI's new risk-based framework.
Citations
- SEBI (2026) SEBI Circular No. 2026
