Appointment of auditor or valuer
Regulation 140
Appointment of auditor or valuer
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter IX · Inspection and Audit
Chapter IX · Inspection and Audit
Regulation 140 – Appointment of auditor or valuer
Medium importance about 3 min
Inspection, audit & enforcement: What happens in an IFSCA inspection, and the grounds for action against an FME.
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In plain English
The Authority may appoint an auditor (with inspecting-authority powers) or a valuer to examine the FME's records/systems or value assets, and may recover the associated fees and expenses.
In plain English
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The rule, in its own words
Read the exact text of Regulation 140
140. (1) The Authority may appoint an auditor to inspect the books of account, records, documents infrastructures, systems and procedures or affairs of an FME:
Provided that the auditor so appointed shall have the same powers of an inspecting authority:
Provided further that a FME and its employees shall have the same obligations towards the auditor as they have towards the Inspecting Authority as specified under regulation 139.
(2) The Authority may appoint a valuer to value the scheme assets if considered necessary.
(3) The Authority shall be entitled to recover expenses including fees paid to the auditors / valuer as may be incurred by it, for such inspection.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
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Exceptions and conditions
Taken from the wording of this provision — the carve-outs and conditions worth reading closely.
Provided that the auditor so appointed shall have the same powers of an inspecting authority:
Provided further that a FME and its employees shall have the same obligations towards the auditor as they have towards the Inspecting Authority as specified under regulation 139
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What this means in practice
Compliance actions
- Applies to
- All FME categories
- Frequency
- Event-driven
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 140
2 questions in the unified bank test this regulation. Each explains every option and cites the provision.
The Authority may appoint an auditor or valuer to examine an FME's records or value scheme assets.
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Your notes
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Inspection, audit & enforcement