Sebi's New Audit Standard Boosts Market Infrastructure Efficiency

Sebi has introduced a standardized format for system and network audit reports for market infrastructure institutions to improve audit efficiency. This framework aims to enhance data quality, compliance, and ease of tracking audit observations through unique IDs, applicable from fiscal year 2024-25.

The Securities and Exchange Board of India (Sebi) announced a new standardized format for system and network audit reports on Friday. This initiative targets market infrastructure institutions (MIIs), including stock exchanges, clearing corporations, and depositories, with the objective of enhancing audit efficiency.

The new framework involves the assignment of unique IDs to observations, simplifying the tracking of both current and historical issues. By doing so, Sebi aims to improve data quality, ensure compliance, and streamline the monitoring of audit findings.

This format will be mandatory for audits conducted in the fiscal year 2024-25. The reports will require disclosure of audit details, IT environment overviews, and will facilitate the identification of technical glitches, compliance status, and pending issues, all with enhanced traceability due to the new identifiers.

(With inputs from agencies.)