Need to see if RBI, SEBI must be audited: CAG

Comptroller and Auditor General of India Shashi Kant Sharma on Friday said there is a need to consider whether financial regulators like the Reserve Bank of India and the Securities and Exchange Board of India need to be audited.

“In India, the CAG does not audit the RBI. It is a thought for consideration if there is a need for the audit and oversight of the financial sector and its regulators,” Mr. Sharma said, citing the fact that financial regulators in the U.K. and the U.S. such as the Bank of England and the Federal Reserve have increasingly been brought under scrutiny. Mr. Sharma was speaking at an Assocham conference on corporate and financial frauds.

Financial frauds thrive in poorly regulated environments and where there is poor financial literacy, Mr. Sharma added, saying that there is a belief that a significant proportion of bank NPAs are due to advances given on the basis of fraudulent means.

Securities and Exchange Board of India ( SEBI )