In a strategic shift to enhance the quality and confidentiality of corporate fraud investigations, the Securities and Exchange Board of India (SEBI) has empanelled only nine firms — down from 20 — to conduct forensic audits, selecting firms based on past performance and rigorous criteria.
SEBI Shrinks Forensic Panel: A Move Towards Tighter Control
In a significant recalibration of its oversight framework, the Securities and Exchange Board of India (SEBI) has trimmed its panel of forensic auditors from 20 firms to just nine. The newly empanelled firms will be tasked with conducting forensic audits of financial statements in cases of suspected corporate fraud, a critical role in safeguarding market integrity.
The newly released list, applicable for three years, replaces the previous panel selected in 2021. The decision marks a notable reduction and signals SEBI’s intent to exercise tighter control over sensitive corporate investigations, according to sources familiar with the regulatory thinking.
The updated panel includes some well-known names — Deloitte, BDO India, Chokshi & Chokshi, CNK & Associates, Jain Chowdhary & Co, Pawan Puri & Associates, Raju & Prasad, Rajvanshi & Associates, and ATK & Associates. Notably, Deloitte remains the only Big Four firm on the list, with KPMG and EY being dropped, and PwC having not made it either time.
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Selection Criteria: Focus on Expertise, Team Strength, and Past Performance
The new empanelment was finalized after SEBI floated a public tender on November 29, 2024, inviting applications from forensic audit firms.
The selection process was stringent. According to SEBI’s guidelines, criteria included the size of the firm’s forensic audit team, the number and complexity of forensic assignments previously undertaken, the experience of individual partners, and the demonstrated ability to handle sensitive, high-stakes investigations.
Among the nine, Deloitte, BDO India, Chokshi & Chokshi, and Rajvanshi & Associates secured their place for a second consecutive term, indicating SEBI’s satisfaction with their earlier performance.
Sources in the audit community pointed out that the selection leaned heavily on the quality of past work — signaling that SEBI is prioritizing trustworthy, competent, and discreet firms for its increasingly complex probes into financial irregularities.
Strategic Shift: Smaller Pool for Sensitive Fraud Probes
SEBI’s decision to operate with a smaller, vetted group of forensic auditors reflects a broader strategy of maintaining confidentiality and ensuring a high degree of quality control over corporate fraud investigations.
Audit firm sources indicate that smaller panels help the regulator reduce information leakage risks and improve consistency in audit outcomes — critical factors when investigating potentially market-moving corporate scandals.
The reduced list also highlights a growing distinction between firms with deep forensic expertise versus traditional auditors. For instance, while KPMG and EY had previously been empanelled, their exclusion this time may reflect SEBI’s sharper focus on forensic specialization rather than general auditing prowess.
Going forward, these nine firms will play a pivotal role in SEBI’s regulatory efforts, conducting forensic audits that could lead to penalties, debarments, or even criminal proceedings against errant corporates.
