Council of the ICAI has approved formation of a ‘Self Regulatory Organisation (SRO)’ to be named as the ‘Institute of Social Auditors of India (ISAI)’ for the purpose of capacity building of ‘social auditors’ in line with the ‘social stock exchange’ requirements notified by SEBI on 25/07/2022.
ISAI will be a leading institution for the development of an independent, ethical, and world-class profession of social auditors, catering to the specific needs and expectations of the stakeholders. ISAI will monitor and regulate the functioning of social auditors under the social stock exchanges framework notified by SEBI.
ISAI is proposed to be set up as a Section 8 company under the Companies Act, 2013, under the aegis of ICAI.
Accordingly, SEBI has come up with a new class of auditors, i.e. ‘Social Auditor’, for conducting audit of the projects/ programs/ activities of social enterprises. As per SEBI notification, a ‘social auditor‘ is defined as an ‘individual registered with a self-regulatory organization (SRO) under the Institute of Chartered Accounts of India (ICAI)‘.
To pursue the role of a social auditor, an individual must qualify a certification program to be conducted by the National Institute of Securities Market (NISM) and hold a valid certificate. Accordingly a non-chartered accountant can also become a social auditor by pursing above certification.
ICAI is very closely working with NISM in developing the course curriculum and the study material for the social auditor’s certification program.
ICAI Announcement dt. 29/08/2022: Formation of Self Regulatory Organization (SRO) for Social Stock Exchange
SEBI Notification dt. 25/07/2022: Regulations for Fund Raising by Social Enterprises at Social Stock Exchange