SEBI has modified the norms for appointment of its internal auditor, a move that enabled the capital market regulator to retain chartered accountants firm Chokshi & Chokshi for two more years. The decision to give a two-year extension to the firm was taken at the last Board meeting of the Securities and Exchange Board of India (SEBI).
The earlier guidelines provided that the SEBI could hire an accounting firm for a maximum term of three years.
Chokshi & Chokshi were appointed as the internal auditors of SEBI for the year 2008-2009 and were re-appointed for two years successively. The term was to expire on March 31, 2011 after completion of three years.
The Audit Committee of SEBI had recommended that the firm be reappointed for a further period of two years (2011-12 and 2012-13).