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In force from 1 April 2027. The SEBI (Portfolio Managers) Regulations, 2026 were notified on 7 October 2026 and replace the 2020 Regulations from 1 April 2027. Until then, the 2020 Regulations apply.

REGULATION 40 · Chapter VII · Inspection and disciplinary proceedings

Appointment of Auditor

SEBI (Portfolio Managers) Regulations, 2026 · notified 7 October 2026 · in force from 1 April 2027

Regulation 40 as notified

(1) In addition to the inspection by inspecting authority, the Board may appoint a qualified auditor to inspect or investigate into the books of account or the affairs of the portfolio manager. (2) The auditor so appointed shall have the same powers of the inspecting authority as mentioned in regulation 35 of these regulations and the portfolio manager shall comply with the obligations specified under regulation 37 of these regulations.

English text of the Gazette notification. Read with any circulars SEBI issues under these Regulations.

PreviousRegulation 39Action on inspection or investigation reportNextRegulation 41Payment of inspection expenses

The plain-English note is a learning aid. The notified text is the law; check later SEBI circulars.

Prashant Kumar

Meet the expert

CS Prashant Kumar

Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker

13+ years of experienceFCS Fellow member, ICSIAuthor Audit Under Fire

Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)

Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.