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SEBI Audit Committee and Internal Audit Norms for MIIs

20 May 20251 min read
BANKING & FINANCESEBI AuditCommittee andInternal AuditNorms for MIIs20 May 2025safalsetu.com

Why in the news

SEBI revised audit committee and internal audit norms for MIIs to strengthen independence.

Key facts

  • No executive director may sit on the audit committee.
  • KMPs may attend only with the chair’s permission; neither they nor auditors get a vote.
  • Committee tasks: related-party transactions, financial statements, internal financial controls, risk systems.
Internal auditNorm
FrequencyAt least yearly
Done byIndependent audit firm
Reports toAudit committee only

Exam angle

  • MII: Market Infrastructure Institution; regulator SEBI.

Test yourself

1. Who is barred from serving on an MII audit committee under SEBI's revised norms?

Audit committees must exclude any executive director, including the MD.

2. How often must MIIs conduct internal audits at minimum?

Internal audits are required at least once annually.

3. To whom must the internal auditor of an MII report exclusively?

The internal auditor reports only to the audit committee.

This topic is part of Daily Current Affairs 20 May 2025 (17 topics).

All topics of the dayDay quizMay 2025

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