Sebi comes up with revised system audit guidelines for MFs, AMCs

Markets regulator Sebi Thursday came out with revised guidelines for system audit to be conducted by mutual funds and asset management companies. The guidelines come after "considering the importance of system audit in technology driven asset management activity and to enhance and standardise the system audit", Sebi said in a circular. Moreover, audit related to unit-holder administration and servicing systems for customer service, funds flow process, system processes for meeting regulatory requirements, prudential investment limits and access rights to systems interface shall also be done. Further, MFs and AMCs are required to submit a report regarding exceptions observed in the system audit to the technology committee for review in the prescribed format.