Attention Members !
Dear Professional Collegues
Sub : Certification by Practising Company Secretary regarding Internal Audit for Credit Rating Agencies
We are pleased to inform you that SEBI vide its circular MIRSD/CRA/Cir-01/2010 dated January 06, 2010 has authorised the Practising Company Secretary to carry out internal audit for Credit Rating Agencies(CRA) on a half yearly basis.
The circular states that audit envisaged under Regulation 22 of the SEBI (Credit Rating Agencies) Regulations, 1999 shall include an internal audit to be conducted on a half yearly basis by Chartered Accountants, Company Secretaries or Cost and Management Accountants who are in practice and who do not have any conflict of interest with the CRA.
The Audit shall cover all aspects of CRA operations and procedures, including investor grievance redressal mechanism, compliance with the requirements stipulated in the SEBI Act, Rules and Regulations made there under, and guidelines issued by SEBI from time to time.
The report shall state the methodology adopted, deficiencies observed, and consideration of response of the management on the deficiencies. It shall include a summary of operations and of the audit, covering the size of operations, number of transactions audited and the number of instances where violations / deviations were observed while making observations on the compliance of any regulatory requirement.
The report shall also comment on the adequacy of systems adopted by the CRA for compliance with the requirements of regulations and guidelines issued by SEBI and investor grievance redressal.
A copy of the circular issued by the SEBI is attached for your ready reference.
CS N K JAIN
SECRETARY & CE0
Click here for view the attachment : SEBI Circular (Internal Audit of CRAs)