• Shivam Maurya
• October 01, 2024
• No Comments

In order to identify vulnerability and cyber threads present within a valuable or personal asset of an individual or an organisation conducting an audit is necessary. In the modern digital world, the cases related to cyber threats are increasing on a daily basis. Therefore, to deal with such issues, conducting an audit is quite necessary. Among different types of audit, SEBI Audit (Security and Exchange Board of India), is considered to be an important audit. As it can help in protecting the Indian security market from cyber threats.

In this blog the importance of SEBI audit and how to prepare it will be discussed. In order to understand the concept more in-depth, guidance from Essential Infosec can be granted. It is an information security consulting firm that offers security services to businesses in terms of protecting confidential information.

What is SEBI audit and its importance?

SEBI audit is also known as the Security and Exchange Board of India. It is mainly used for regulating the security market present in India. This audit has been introduced to ensure market intermediaries and listed companies have implemented robust cyber security measures to protect confidential information. It is considered to be a proactive approach that will support in enhancing market resilience and to safeguard rights of investors. In general, these audits are conducted to protect the Indian security market from cyber threats. The audit also offers different cyber security measures considering which an organisation can protect their confidential and valuable assets.

What can be expected from this audit?

In general, SEBI audits can cover a range of topics. That can assist in protecting the confidential information of the Indian security market. Some of the major aspects covered by this audit include:

• System audit: A system audit mainly is responsible for checking whether there is the existence of algo stops processing, when no data is fed. It is also responsible for ensuring that the audit trail can be established with unique identifiers so that brokers can continue logs for performing trading activities.
• Forensic audits: It is often conducted by a business organisation to disclose forensic audits. After initiating them, business organisations often file the audit report and manage comments on it. It also supports detecting all misstatements in finance and checking for inappropriate funds.
• Portfolio manager audit: It is conducted to manage the portfolio of a business organisation. Includes a standard term that needs to be submitted within 60 days by the business organisation every financial year to confirm compilation.

How to prepare a SEBI audit?

In order to prepare a SEBI audit an individual business organisation needs to follow a few steps or guidelines. The steps which need to be followed by a business organisation for preparing such audits are highlighted below

• A business organisation should ensure that it meets all the qualification and certification requirements at all times to avoid complications.
• The brand should ensure capital adequacy requirement is fulfilled throughout the validity of registration to avoid legal complications.
• The manager should focus on communicating all the changes to SEBI in a written mode to avoid any legal conflicts.
• It is necessary to mention research analysts in all correspondence with the clients.
• It is necessary to keep all the internal policies and procedures related to government dealings and trading in a written mode to avoid legal issues.
• All the trading activity needs to be monitored by the manager to ensure legal compliance.
• The manager should also focus in keeping all the reports in a documented file to avoid future complications.

In conclusion, it can be said that the SEBI audit is extremely important for a business organisation operating within the Indian financial sector. Since it can offer relevant guidance in protecting confidential information from cyber threats. However, to conduct such an audit appropriate steps and processes need to be followed which can be acquired through the support of Essential Infosec. It is because the business organisation can offer guidance about ways to secure confidential information from cyber threats to protect brand reputation in the future.