SEBI picks its Forensic Audit Panel—Only Deloitte makes the cut from Big 4!

• It’s that time of the year!
• The Securities and Exchange Board of India has slashed its forensic audit panel to just 9 firms.
• Surprisingly, Big 4 firms like Ernst & Young, KPMG, and Grant Thornton Bharat are nowhere to be seen.

What’s happening?

SEBI has chosen its list of empanelled forensic auditors.

Well, these firms are tasked with the special task of probing financial statements of listed companies for fraud.

But, things look a little different on the new panel.

In 2022, there were 20 auditors on the panel. That number has now been reduced to 9 for 2025.

Surprisingly, two Big Four firms didn’t make the cut this year.

Here is SEBI’s forensic auditors’ list

1. ATK & Associates
2. BDO India LLP
3. Chokshi & Chokshi LLP
4. CNK & Associates LLP
5. Deloitte Touche Tohmatsu India LLP
6. Jain Chowdhary & Co.
7. Pawan Puri & Associates
8. Raju & Prasad Chartered Accountants
9. Rajvanshi & Associates

Amongst these, BDO, Deloitte, Chokshi & Chokshi, and Rajvanshi and Associates have been selected for a second time.

Who lost the spot?

It was mostly the big names like,

1. Ernst & Young
2. KPMG Assurance And Consulting Services
3. Grant Thornton Bharat.

It’s worth noting that PwC wasn’t previously on the panel, unlike KPMG and EY. (Looks like PwC didn’t miss much after all.)

Also read: SEBI cracks down on 15,000 unregistered Finfluencers

How is SEBI selecting its list of independent auditors?

Here’s how SEBI is cherry-picked its compact, high-impact audit team:

• Frequent past engagements with SEBI
• Strong track record over the past three years; especially if audits were completed on time.
• Number and complexity of past assignments
• The experience of key partners involved
• Team size and bench strength

What’s the reason?

No had feelings, but as reported by Financial Express, SEBI made this decision to,

• Maintain a “short and manageable” list.
• Create a more streamlined and efficient panel, allowing for focused oversight and enhanced efficiency.

Does your firm qualify?

Now, you might be wondering—what does it take for a firm to make the list?

Here is SEBI’s specific criteria for applicants:

• At least 10 years of experience in forensic auditing.
• A minimum of 10 partners or directors, with at least 5 actively involved in forensic audit-related work.
• Additionally, you needed to have completed at least 15 forensic audits in the past three years, with three of those audits assigned by a regulatory body, government agency, or PSU.

The firms that made the cut will receive fees ranging from Rs 10-30 lakh per assignment, depending on,

• The duration of the forensic audit,
• The size of the company being audited,
• And the current market rate.

Also read: SEBI and Adani controversy: India’s financial regulatory system is flawed?

Closing

The new list replaces the 2021 panel. It will be valid for the next three years.

The regulator will re-empanel forensic auditors after three years.

Looks like being a big player doesn’t guarantee a spot on SEBI’s list this time.

FAQs

Q: Who is SEBI’s new Chairman?

Tuhin Kanta Pandey is the new Chairperson of the Securities and Exchange Board of India (SEBI). He succeeded Madhabi Puri Buch on March 1, 2025.

Q: What is the main role of SEBI?

The Securities and Exchange Board of India (SEBI) is a statutory regulatory body of India. It regulates the Indian securities market and protect the interests of investors in securities.