Context:
On May 15, 2025, the Securities and Exchange Board of India (SEBI) relaxed eligibility norms for the composition of internal audit teams of Credit Rating Agencies (CRAs) to expand the pool of qualified professionals.
Key Changes Introduced
- New Qualifications Added:
- Cost Accountants (from ICMAI)
- Professionals with Diploma in Information System Security Audit (DISSA) from ICMAI
- Earlier Requirement:
- Mandatory presence of a Chartered Accountant (CA) and either a:
- Certified Information Systems Auditor (CISA) or
- Diploma in Information System Audit (DISA) holder
- Mandatory presence of a Chartered Accountant (CA) and either a:
Objective of the Change
- Widen the pool of professionals eligible for CRA internal audits
- Strengthen regulatory compliance through inclusion of information security and cost audit expertise
Impact
- Greater flexibility for CRAs in forming internal audit teams
- Encourages diversification in professional skill sets
- Supports enhanced governance and IT security audits within rating agencies
