SEBI to carry out about one-third as many inspections of brokers, DPs, IAs and RAs in FY 2026-27; repetitive annual inspections of compliant entities discontinued
SEBI has adopted an enhanced approach to inspecting market intermediaries from FY 2026-27. Its targeted number of inspections of stock brokers, DPs, IAs and RAs is rationalised to approximately one-third of the previous year. Repetitive annual comprehensive inspections of compliant entities, especially QSBs, are being discontinued, and entities are shortlisted quarterly on risk parameters.
Key facts
- In force
- Commencing from Financial Year 2026-27
- Who it affects
- Stock brokers (including QSBs), Depository Participants, IAs and RAs, and entities holding multiple intermediary registrations
- What it is
- New facility
- Section
- SEBI
- Published
- 7 August 2026
In 30 seconds
- SEBI Press Release PR No. 44/2026 is dated 7 August 2026.
- Stock broker and Depository Participant inspections are streamlined by mandating joint inspection by Stock Exchanges and Depositories.
- SEBI’s targeted number of inspections for FY 2026-27 is approximately one-third of those conducted in the preceding financial year.
- Repetitive annual comprehensive inspections of compliant entities by SEBI, especially QSBs, are being discontinued.
- Entities that repeatedly feature across shortlisting parameters, carry high risk scores or trigger multiple exchange alerts are prioritised.
- Shortlisting is done on a quarterly basis, with higher weightage to recent instances of possible violations.
हिंदी में सार
SEBI ने प्रेस रिलीज़ PR 44/2026 (7 अगस्त 2026) में बताया है कि वित्त वर्ष 2026-27 से स्टॉक ब्रोकर, DP, IA और RA के उसके अपने निरीक्षण पिछले साल के लगभग एक-तिहाई रह जाएँगे। नियमों का पालन करने वाली संस्थाओं, ख़ासकर QSB, का हर साल दोहराया जाने वाला व्यापक निरीक्षण बंद किया जा रहा है। जिन संस्थाओं का रिस्क स्कोर ऊँचा है या जिन पर बार-बार अलर्ट आते हैं, उन्हें प्राथमिकता दी जाएगी और चयन हर तिमाही होगा।
Before and now
Repetitive annual comprehensive inspections by SEBI of compliant entities, especially QSBs.
Discontinued. From FY 2026-27 SEBI targets about one-third of last year’s inspections, prioritising entities with high risk scores or multiple alerts.
What SEBI has said
By Press Release PR No. 44/2026 dated 7 August 2026, SEBI has said it is streamlining inspections of stock brokers and Depository Participants (DPs) by mandating joint inspection by Stock Exchanges and Depositories. Based on deliberations with Market Infrastructure Institutions (MIIs) and the Supervisory Body for IAs/RAs, an enhanced approach has been adopted for SEBI’s own inspection of intermediaries, commencing from the Financial Year 2026-27.
SEBI describes the approach as dynamic: it brings in new risk parameters for identifying and shortlisting entities for inspection. The steps are intended to improve ease of doing business for intermediaries by rationalising the frequency of inspection visits.
The five steps
| Step | What the press release says |
|---|---|
| Fewer SEBI inspections | Considering the regular inspections of stock brokers, DPs, IAs and RAs already done by Stock Exchanges and Depositories, SEBI’s targeted number of inspections in FY 2026-27 is rationalised to approximately one-third of the inspections conducted in the preceding financial year |
| No repetitive annual inspections of compliant entities | Repetitive annual comprehensive inspections of compliant entities by SEBI, especially QSBs, are being discontinued. Entities that repeatedly feature across shortlisting parameters over time, carry high risk scores, or trigger multiple alerts processed by Exchanges are being prioritised |
| One visit for multiple registrations | Entities holding multiple intermediary registrations are inspected jointly by different departments of SEBI, wherever feasible, to reduce the number of inspection visits across the financial year |
| Quarterly shortlisting | Greater emphasis on alerts generated by the Exchanges, complaints and social media, so that recent instances of possible violations get higher weightage. Shortlisting is accordingly being done on a quarterly basis |
| Theme-based inspections | Inspections are also undertaken on market intelligence and references, including inputs from ROs/LOs, covering themes including but not limited to technical glitches, cyber incidents and Authorised Persons of stock brokers |
What intermediaries should note
- The reduction is in the number of inspections carried out by SEBI. The press release refers to the regular inspections by Stock Exchanges and Depositories as the reason SEBI’s own target has been cut; it does not say those inspections are reduced.
- A compliant record matters more: entities that keep appearing on shortlisting parameters, carry high risk scores or trigger multiple alerts are the ones being prioritised.
- Complaints, exchange alerts and social media are named as inputs for shortlisting, which is now done every quarter.
- Technical glitches, cyber incidents and the conduct of Authorised Persons are named as themes on which inspections may be taken up on references received.
The press release does not give the number of inspections conducted in the preceding year or the number targeted for FY 2026-27.
Questions and answers
By how much has SEBI reduced its inspections?
The targeted number of inspections to be carried out by SEBI in FY 2026-27 has been rationalised to approximately one-third of the inspections conducted in the preceding financial year. The press release does not give the absolute numbers.
Will a compliant broker still be inspected by SEBI every year?
The press release says repetitive annual comprehensive inspections of compliant entities by SEBI, especially QSBs, are being discontinued. Entities that repeatedly feature across shortlisting parameters, carry high risk scores or trigger multiple alerts are prioritised.
How are entities picked for inspection?
Shortlisting is done on a quarterly basis using risk parameters, with greater emphasis on alerts generated by the Exchanges, complaints and social media, so that recent instances of possible violations get higher weightage.
What about an entity with more than one registration?
Inspections of entities with multiple intermediary registrations are being conducted jointly by different departments of SEBI, wherever feasible, to reduce the number of inspection visits in the financial year.
Published 7 August 2026. Updated 9 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.