SEBI has introduced a risk-based framework for market intermediary inspections for the fiscal year 2026-27, allowing joint inspections and reducing the frequency of inspections. This aims to optimize resource allocation and strengthen regulatory oversight.
SEBI Streamlines Intermediary Inspections with Risk-Based Framework
The Securities and Exchange Board of India (SEBI) has announced a new risk-based framework for conducting market intermediary inspections during the fiscal year 2026-27. This initiative aims to enhance the efficiency and effectiveness of regulatory inspections by allowing for joint inspections and a reduced frequency of individual assessments.
Under the new framework, SEBI will prioritize inspections based on the risk profile of intermediaries, enabling better allocation of resources and regulatory focus on entities that may pose higher risks to market integrity. This approach provides a more strategic oversight mechanism and is anticipated to improve compliance rates among intermediaries.
This regulatory shift aligns with best practices internationally and reflects SEBI's commitment to a dynamic regulatory environment. Practitioners in the field should prepare for the potential implications of this new inspection strategy, particularly concerning compliance standards and reporting requirements.
Citations
- SEBI Framework (2026)
