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<h1>SEBI Requires Biannual Internal Audits for Credit Rating Agencies to Strengthen Investor Protection and Regulatory Compliance.</h1> The Securities and Exchange Board of India (SEBI) mandates that Credit Rating Agencies (CRAs) conduct internal audits biannually. These audits must be performed by independent professionals such as Chartered Accountants or Company Secretaries. The audit covers CRA operations, investor grievance mechanisms, and compliance with SEBI regulations. Reports should detail methodology, deficiencies, management responses, and compliance adequacy. CRAs must receive audit reports within two months post-half-year, address deficiencies, and submit an Action Taken Report to SEBI within another two months. This directive aims to protect investors and ensure regulatory compliance in the securities market.