SEBI Mandates System Audit Format for MIIs
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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Reporting Templates: BEFORE, each MII used its own distinct template for system and network audits, making comparative analysis difficult. NOW, all MIIs must use a single, SEBI-prescribed standardized format covering audit specifics, methodology, and IT environment overviews.
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Issue Tracking: BEFORE, tracking open or historical audit observations across different MIIs was complex and prone to manual oversight. NOW, SEBI mandates assigning a Unique ID to every audit observation, ensuring seamless traceability from identification to closure.
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Pending Issue Disclosure: BEFORE, reporting of historical and unresolved technical glitches lacked a uniform structure. NOW, MIIs must explicitly provide a categorized list of pending issues, including unresolved observations from previous audits and formal justifications for non-closure.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)With reference to SEBI's standardized format for System and Network Audits of Market Infrastructure Institutions (MIIs) introduced in April 2025, which of the following statements is/are correct? 1. It applies to entities such as stock exchanges, depositories, and clearing corporations. 2. The new framework introduces a system of assigning unique identification numbers to each audit observation to improve historical traceability.