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SEBI internal auditor given 2 year extension
April, 25th 2011

The SEBI has modified the norms for appointment of its internal auditor, a move that enabled the capital market regulator to retain the chartered accountants firm Chokshi & Chokshi for two more years.

The decision to give a two-year extension to the firm was taken at the last Board meeting of the Securities and Exchange Board of India (SEBI).

The earlier guidelines provided that the SEBI could hire an accounting firm for a maximum term of three years.

Chokshi & Chokshi were appointed as the internal auditors of SEBI for the year 20082009 and were re-appointed for two years successively. The term was to expire on March 31, 2011 after completion of three years.

The Audit Committee of SEBI had recommended that the firm be reappointed for a further period of two years (201112 and 201213).

The decision to extend the years is aimed at ensuring independence and continuity of the auditors, an official said.

The official said that the SEBI may henceforth follow a policy whereby internal auditors are appointed for a period of three years extendable for a further period of up to two years.

Chokshi & Chokshi provides professional expertise and integrated range of advisory, assurance, tax and international accounting services across the world. In India it operates through it offices at Mumbai and Pune.

 
 
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