The Securities and Exchange Board of India today asked all mutual fund companies to get their systems audited at least once in two years and submit the reports to the market regulator.

Also for the financial years April 2008 to March 2010 the audit should be completed by September 2010, the regulator in a statement issued here.

"Accordingly, you (mutual fund companies) are advised to get the above systems audit conducted once in two years. You are further advised to place the Systems Audit Report and compliance status before the Trustees of the mutual fund.

The systems audit report/findings along with trustee comments should be communicated to SEBI. For the financial years April 2008 - March 2010, the systems audit should be completed by September 30, 2010."

The regulator said considering the importance of systems audit in the technology driven asset management activity, it has been decided that mutual funds shall have a systems audit conducted by an independent CISA/CISM qualified or equivalent auditor.

SEBI also pointed out that the systems audit should be comprehensive encompassing audit of systems and processes inter alia related to examination of integration of front office system with the back office system, fund accounting system for calculation of net asset values, financial accounting and reporting system for the fund houses or Asset Management Companies.