BFSI
The banking and financial services sector plays a pivotal role in economic development and capital allocation. It operates under intensive regulatory oversight, requiring organizations to maintain strong governance, transparent reporting, and risk management frameworks. T R Chadha & Co LLP has a long history of working with institutions across banking, non-banking finance, insurance, mutual funds, and capital markets. Our engagements in this sector are carried out with independence and technical rigor, ensuring compliance with supervisory expectations while addressing sector-specific complexities.
- Banking
- NBFCs
- Capital Market Intermediaries
- Fintech
- Health Insurance
- Life Insurance
- Non-Life Insurance
- Private Equity
- Mutual Funds
- Stock Exchange
- Venture Capital
Banking
The banking sector forms the foundation of the financial system, channeling household savings into productive investments and providing credit that fuels business activity and economic growth. As a highly regulated sector, banks must adhere to extensive compliance frameworks set by the Reserve Bank of India (RBI) and other supervisory bodies. These regulations cover capital adequacy, liquidity standards, asset classification, and disclosure requirements. The combination of economic importance and regulatory oversight makes banking a sector where transparency, governance, and independent evaluation are essential.
Audits and reviews in the banking industry are diverse in scope. Statutory central audits and branch statutory audits ensure the financial statements of banks reflect an accurate and fair position. Concurrent audits, which run alongside operations, provide continuous oversight of transactions and processes, helping identify irregularities or gaps in real time. Specialized reviews, such as treasury audits, foreign exchange audits, and credit risk evaluations, are equally significant given the complexity of banking activities. These assignments collectively enhance stakeholder confidence and support compliance with regulatory expectations.
The increasing role of technology has transformed the way banks operate. With digital banking, mobile payments, and online lending platforms now mainstream, assurance activities extend to IT systems, cybersecurity, and data protection. Independent reviews in this space assess whether systems are secure, reliable, and compliant with data privacy regulations. As digital innovation accelerates, such evaluations help banks strike the right balance between innovation and risk control.
Risk management is another vital dimension of the sector. Banks must constantly monitor credit exposures, market movements, and operational risks, each of which can significantly impact performance and stability. Independent assessments test the adequacy of governance and control frameworks, ensuring risks are identified, monitored, and mitigated effectively. This not only satisfies regulatory requirements but also reinforces long-term trust in the system.
Beyond routine audits, banks may also undergo regulatory-mandated forensic reviews, investigations, or thematic studies, particularly in response to emerging sectoral issues. These specialized assignments promote accountability and safeguard stakeholder interests. Together, statutory assurance, continuous oversight, and independent evaluations strengthen the resilience of the banking system, enabling it to remain a cornerstone of economic growth and financial inclusion.
Non-Banking Finance Companies (NBFCs)
Non-Banking Finance Companies (NBFCs) play a crucial role in broadening financial access, supporting economic activity where traditional banks may not always reach. They cater to diverse segments such as housing finance, vehicle loans, microfinance, and infrastructure financing. Unlike banks, NBFCs do not hold a banking license, but they are regulated closely by the Reserve Bank of India (RBI) and must adhere to strict norms on capital adequacy, asset classification, and governance. Their presence has expanded significantly over the last two decades, making them integral to financial inclusion and credit delivery.
Independent reviews and audits are particularly important for NBFCs, given their reliance on investor confidence and the need to maintain credibility with regulators. Statutory audits ensure accurate financial reporting, while compliance reviews check adherence to prudential norms set by RBI. Concurrent audits, receivable audits, and stock audits are also common, providing ongoing assurance over asset quality and lending practices. Each engagement requires an understanding of the NBFC’s product portfolio, risk profile, and operational framework.
The sector has experienced both rapid growth and stress in recent years, highlighting the importance of strong governance and risk management. Issues around liquidity, asset-liability mismatches, and exposure concentration have brought greater regulatory scrutiny. Independent assurance helps identify such vulnerabilities early, while also testing whether corrective measures and monitoring frameworks are effective. This structured approach not only aligns with RBI’s supervisory expectations but also provides comfort to investors, lenders, and other stakeholders.
Technology is also reshaping the NBFC space. Digital lending platforms, data-driven credit assessments, and fintech collaborations are becoming increasingly common. While these innovations enhance access, they also create new challenges around data security, compliance, and operational risks. Independent reviews of IT systems and process frameworks are therefore critical. By balancing innovation with compliance, NBFCs can continue to expand responsibly and strengthen their role in financial intermediation.
Overall, NBFCs represent a dynamic segment of the financial system. Independent audits and regulatory reviews support their growth while ensuring that governance, transparency, and compliance remain at the forefront. This allows NBFCs to maintain resilience and continue contributing to economic development in a sustainable way.
Capital Market Intermediaries
Capital market intermediaries form the backbone of India’s securities markets, facilitating transactions between issuers and investors. These include stockbrokers, depositories, clearing corporations, merchant bankers, and other SEBI-registered entities. Their activities are governed by detailed regulatory frameworks covering investor protection, transaction reporting, risk management, and governance standards. Given their role in enabling transparent and efficient markets, intermediaries require continuous oversight and assurance.
Independent audits of capital market intermediaries cover financial reporting, compliance with SEBI regulations, and evaluation of operational controls. Engagements may include annual statutory audits, internal audits, and special assignments related to risk management systems, transaction reconciliation, and margin monitoring. For depositories and clearing corporations, audits often extend to IT systems and process reviews, given the scale and sensitivity of operations. Each assignment contributes to ensuring that markets operate with integrity and reliability.
One of the defining features of capital markets is the pace of change. New instruments, trading platforms, and regulatory updates require intermediaries to constantly adapt their processes. Independent reviews test whether these changes are being implemented in line with compliance standards, minimizing risks of errors, fraud, or system vulnerabilities. For brokers and trading members, audits of client funds, margin maintenance, and reporting processes are particularly critical to protecting investor interests.
Technology has reshaped capital market operations, with electronic platforms, algorithmic trading, and digital settlement systems now dominant. This has created both opportunities and risks. System audits and cybersecurity reviews are essential to validate that platforms remain robust, secure, and resilient to threats. With high transaction volumes and speed-sensitive operations, any lapses can have significant consequences, making independent assurance vital.
The capital markets sector thrives on transparency and investor confidence. Through statutory audits, compliance reviews, and specialized system assessments, assurance services provide the necessary safeguards. These engagements help ensure that intermediaries function responsibly, regulatory requirements are met, and markets continue to operate efficiently and fairly for all participants.
FinTech
FinTech has rapidly transformed the financial landscape by combining technology with financial services to create innovative solutions for payments, lending, and wealth management. Covering areas such as mobile wallets, peer-to-peer lending, digital payment gateways, and algorithm-driven investment platforms, fintech companies have redefined how individuals and businesses access financial products. The Reserve Bank of India (RBI), SEBI, and other regulators play a crucial role in ensuring that fintech activities remain secure, transparent, and compliant with existing frameworks.
Independent assurance in fintech goes beyond traditional audits, extending into system reviews, IT governance, and cybersecurity assessments. Given the digital-first nature of these businesses, the reliability of platforms, the protection of customer data, and the resilience of transaction systems are central to evaluations. Payment operators often undergo audits of settlement processes, reconciliation systems, and compliance with supervisory requirements. For lending-focused fintechs, reviews also include loan origination practices, credit scoring algorithms, and fair-lending compliance.
The sector faces unique risks, including data privacy challenges, cyber threats, and evolving regulations. Independent reviews often help identify control gaps, test resilience frameworks, and evaluate risk management processes. Many fintechs operate in collaboration with banks and NBFCs, which makes assurance of outsourcing arrangements and service-level compliance critical. Assessing how these partnerships handle responsibilities such as KYC, AML compliance, and grievance redressal is also a growing area of focus.
As fintech expands, regulators have emphasized consumer protection and systemic stability. Independent audits and reviews support these goals by ensuring compliance with licensing conditions, data protection norms, and supervisory reporting standards. They also validate whether consumer-facing processes remain transparent, fair, and accountable.
The fintech sector’s continued growth depends on a balance between innovation and compliance. By integrating independent evaluations into their operations, fintechs can build resilience, inspire stakeholder confidence, and contribute to a secure, technology-driven financial ecosystem.
Health Insurance
Health insurance is one of the fastest-growing segments of the insurance industry, driven by rising healthcare costs, increasing awareness, and regulatory initiatives. It provides financial protection to individuals and families against medical expenses, covering hospitalization, treatments, and preventive care. The Insurance Regulatory and Development Authority of India (IRDAI) prescribes guidelines for product design, claims settlement, disclosures, and solvency requirements, making governance and compliance central to this sector.
Independent audits in health insurance focus on financial reporting, accuracy of premium income recognition, and adequacy of claims provisioning. Statutory audits test whether results are fairly presented, while internal audits and compliance reviews assess adherence to IRDAI norms. Specialized reviews may include claims processing audits, network hospital arrangements, and evaluation of fraud detection mechanisms. These engagements help ensure that operations remain transparent and policyholder interests are safeguarded.
The sector faces unique challenges due to the unpredictability of healthcare costs, rising claim ratios, and the need for effective underwriting practices. Independent reviews often examine governance frameworks around claims adjudication, reinsurance arrangements, and compliance with product filing requirements. With group policies and cashless facilities becoming common, system reliability and accuracy in third-party administrator (TPA) operations also require careful evaluation.
Digital adoption has been significant in health insurance, with many insurers offering online policy issuance, claim submissions, and telemedicine tie-ups. Assurance activities now extend to reviewing IT platforms, data protection systems, and cybersecurity measures. Ensuring that digital processes align with regulatory requirements and provide reliable service to policyholders is a critical part of oversight.
By combining statutory audits, compliance reviews, and specialized evaluations, independent assurance supports the health insurance sector in meeting its twin goals of financial security and policyholder protection. As the sector grows, such oversight will remain central to sustaining trust and resilience.
Life Insurance
Life insurance provides long-term financial security to individuals and families, ensuring protection against income loss due to unforeseen events. It also acts as an important vehicle for savings and retirement planning, with products ranging from term insurance to endowment and unit-linked policies. The Insurance Regulatory and Development Authority of India (IRDAI) prescribes detailed frameworks on solvency, disclosures, investment norms, and policyholder protection, making governance and compliance central to the sector.
Independent audits in life insurance focus on the accuracy of financial statements, recognition of premium income, and adequacy of actuarial provisions. Statutory audits test whether results reflect a true and fair view of financial performance, while internal audits and compliance reviews check adherence to regulatory guidelines. Specialized reviews may include policy issuance processes, actuarial assumptions for reserves, and reinsurance arrangements. These evaluations strengthen confidence in the sector and protect policyholder interests.
Life insurers face unique challenges due to the long-term nature of their contracts. Assumptions around mortality, persistency, and investment returns directly impact financial statements. Independent reviews often test the reasonableness of these assumptions and the governance frameworks that support them. The sector also requires close monitoring of sales practices, distribution models, and grievance redressal mechanisms to ensure fairness and transparency.
Technology has transformed the way life insurance is distributed and managed. Online policy issuance, automated underwriting, and digital servicing platforms are now common. This has increased the importance of system audits, cybersecurity reviews, and data protection assessments. Independent oversight ensures that these innovations are reliable, secure, and compliant with regulations.
As life insurance continues to expand its reach, independent assurance plays a key role in validating solvency, strengthening governance, and protecting policyholder confidence. These engagements contribute to the sector’s role in long-term financial stability and economic development.
Non-Life Insurance
Non-life insurance, also known as general insurance, covers risks such as motor, property, health, marine, and liability. It provides financial protection against unexpected losses arising from accidents, natural disasters, and business disruptions. The Insurance Regulatory and Development Authority of India (IRDAI) oversees this sector, prescribing regulations for product design, claims settlement, reinsurance, and solvency margins. Given the short-term nature of most policies, governance and compliance in this sector demand constant monitoring.
Independent audits in non-life insurance examine the accuracy of financial reporting, premium recognition, and adequacy of claims provisioning. Statutory audits ensure that results are fairly presented, while internal audits and compliance reviews evaluate adherence to IRDAI regulations. Specialized assignments may include claim audits, risk pool evaluations, and reviews of loss-adjustment practices. These engagements are critical in maintaining transparency and protecting policyholder trust.
The sector faces challenges from high claim volumes, catastrophe-related risks, and the need for effective underwriting practices. Independent reviews often assess governance frameworks in areas such as motor third-party liability, crop insurance, and large commercial risks. With reinsurance playing a significant role, evaluations also extend to treaty compliance and recoverable monitoring.
Digital platforms have significantly improved the distribution and servicing of non-life insurance products. From instant motor policy issuance to online claim intimation, insurers rely heavily on IT systems. Assurance in this space covers system audits, cybersecurity, and data protection to ensure that processes remain secure, reliable, and compliant with supervisory standards.
By combining statutory audits, compliance reviews, and specialized evaluations, independent assurance supports non-life insurers in meeting regulatory obligations and protecting policyholder interests. This oversight is essential for maintaining the sector’s stability and resilience in a risk-intensive environment.
Private Equity
Private equity (PE) plays a major role in channeling long-term capital into businesses, supporting growth, restructuring, and innovation. PE investors typically participate through funds or direct investments, focusing on value creation in portfolio companies. This sector is regulated by the Securities and Exchange Board of India (SEBI) under frameworks applicable to Alternative Investment Funds (AIFs), along with provisions of the Companies Act, FEMA, and taxation laws. Given the complexity of investments, assurance in this sector is critical for maintaining governance and transparency.
Independent audits of private equity funds and portfolio companies focus on financial reporting, valuation of investments, and compliance with applicable regulations. Statutory audits test the accuracy of financial statements, while internal reviews may examine fund governance, capital calls, and distribution mechanisms. Specialized engagements often include due diligence reviews, fund structuring evaluations, and monitoring of investor reporting practices.
Valuation is a central challenge in private equity. Independent assessments test the fairness of valuation methodologies applied to portfolio companies, whether based on discounted cash flow, comparable market multiples, or net asset value approaches. Such reviews provide confidence to investors and regulators, ensuring that reported figures reflect economic reality.
The private equity sector also faces scrutiny around compliance with foreign exchange regulations, taxation frameworks, and investor disclosure requirements. Independent reviews ensure that transactions are structured in compliance with FEMA and SEBI rules, and that investor reporting meets prescribed standards.
As private equity continues to grow as a source of capital, independent assurance plays a vital role in reinforcing transparency and accountability. These engagements contribute to building trust between fund managers, investors, and regulators, enabling sustainable growth in this dynamic sector.
Mutual Funds & Asset Management
The mutual fund and asset management industry plays a critical role in mobilizing household and institutional savings into capital markets. By pooling resources from investors and deploying them across equity, debt, and hybrid instruments, mutual funds provide an efficient channel for wealth creation and capital allocation. The industry is regulated by the Securities and Exchange Board of India (SEBI), which prescribes strict rules on fund management, disclosures, governance, and investor protection. Transparency and compliance in this sector are therefore essential to maintaining investor confidence.
Independent audits and reviews in the mutual fund industry address both financial reporting and regulatory compliance. Statutory audits of fund houses, scheme accounts, and trusteeship entities ensure accuracy in reporting net asset values (NAVs), portfolio holdings, and expenses. Concurrent audits of operations, registrar and transfer agents (RTAs), and custodians provide continuous oversight on processes such as investor servicing, settlement of trades, and adherence to investment guidelines. These engagements collectively ensure that investor interests remain protected.
The industry also requires specialized assurance assignments such as system audits, risk management framework evaluations, and reviews of compliance with SEBI circulars. As fund houses expand into new product categories like exchange-traded funds (ETFs), international funds, and alternative investment vehicles, independent assessments help in testing whether processes are aligned with regulations and operational standards. Given the scale of investor participation, such oversight enhances accountability and safeguards financial integrity.
Digital platforms and online distribution have significantly transformed the mutual fund industry in recent years. With investors increasingly accessing products through apps and portals, system reliability and cybersecurity are areas of growing focus. Independent IT audits, data protection checks, and transaction flow reviews are now integral to assurance, helping ensure that digital convenience does not compromise investor safety.
The mutual fund and asset management sector is central to the efficient functioning of financial markets, providing both diversification for investors and long-term capital for businesses. Independent audits, compliance reviews, and system evaluations serve as critical mechanisms for upholding governance, ensuring regulatory alignment, and reinforcing trust in a sector that touches millions of investors.
Stock Exchange
Stock exchanges are central institutions in the financial system, providing a platform for companies to raise capital and for investors to trade securities. They are regulated by the Securities and Exchange Board of India (SEBI) and must comply with stringent requirements covering listing obligations, market integrity, surveillance, and investor protection. Given their systemic importance, independent audits and reviews play a vital role in safeguarding the transparency and reliability of operations.
Independent assurance in stock exchanges typically includes statutory audits of financial statements, compliance audits with SEBI regulations, and system audits of trading platforms. Given the high volume and speed of transactions, technology reviews are especially significant, ensuring that systems remain robust, secure, and capable of handling peak loads. Cybersecurity evaluations, data integrity checks, and business continuity reviews are also essential parts of independent oversight.
Market surveillance and regulatory functions are another critical dimension of stock exchanges. Independent reviews test whether surveillance mechanisms are adequate for detecting unusual trading patterns, insider trading, or market manipulation. Evaluations also extend to governance frameworks, ensuring independence of oversight bodies and compliance with SEBI’s requirements.
Stock exchanges face constant technological change, with algorithmic trading, mobile platforms, and international connectivity becoming more prevalent. Independent IT audits validate that these systems remain resilient and compliant with regulations. By highlighting vulnerabilities and recommending improvements, such reviews enhance the stability of capital markets.
Through a combination of statutory audits, compliance evaluations, and technology reviews, independent assurance strengthens the credibility of stock exchanges. This oversight ensures that markets continue to function efficiently, transparently, and in the best interests of investors.
Venture Capital
Venture capital (VC) is a key driver of entrepreneurship and innovation, providing early-stage funding to startups with high growth potential. VC funds invest in sectors ranging from technology and healthcare to consumer businesses, often taking calculated risks to support new business models. In India, venture capital is governed by SEBI’s Alternative Investment Fund (AIF) regulations, FEMA provisions, and taxation laws. The combination of high risk and regulatory oversight makes independent assurance vital in this space.
Independent audits in venture capital focus on fund-level reporting, portfolio company valuations, and compliance with regulatory requirements. Statutory audits ensure that financial statements of funds and portfolio companies are accurate, while internal reviews may assess fund governance, capital deployment, and investor reporting mechanisms. Specialized assignments often include due diligence on investee companies, deal structuring evaluations, and exit readiness reviews.
Valuation is one of the most challenging aspects of venture capital. Early-stage companies often lack established financial track records, making valuation assumptions highly subjective. Independent assessments test the reasonableness of valuation approaches, such as discounted cash flow or comparable transaction multiples, providing assurance to investors and regulators.
The sector also requires compliance with FEMA and SEBI guidelines, particularly in cross-border investments and investor disclosures. Independent reviews validate adherence to these rules and provide transparency in fund operations. Risk assessments also focus on governance practices within portfolio companies, ensuring that investments are managed responsibly.
Venture capital plays a critical role in supporting innovation and job creation. Independent audits and reviews strengthen trust between investors, fund managers, and regulators, ensuring that capital flows are managed transparently. This oversight helps sustain the sector’s contribution to economic growth and entrepreneurial development.
Assignments in the BFSI sector are carried out with independence, objectivity, and awareness of supervisory standards. Each engagement is designed to strengthen governance and align reporting with regulatory expectations, while maintaining clarity and consistency in professional delivery.
Relevant Services
Automation of Selected Processes
Automation of selected processes enables organizations to leverage technology to streamline repetitive, manual, and high-volume
Advisory for remediation & control implementation
Once compliance gaps and risks are identified, organizations need practical remediation strategies to address deficiencies.
Advisory- Structuring, Restructuring, and M&A
Strategic structuring and restructuring of business entities play a crucial role in optimizing tax positions,
Agencies for Specialized Monitoring (ASM)
Agencies for Specialized Monitoring (ASM) audits are mandated by banks and financial institutions, particularly for