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.
With regards
CS N K JAIN
SECRETARY & CE0
Click here for view the attachment : SEBI Circular (Internal Audit of CRAs)
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