The SEBI regulations provide an inclusive, rather than exhaustive, list of professional firms that are considered fiduciaries. The Explanation to Regulation 3(2A) explicitly states that the following shall be collectively referred to as fiduciaries:

  • Auditors and Accountancy firms
  • Law firms
  • Analysts
  • Insolvency professional entities
  • Consultants
  • Banks

The common thread among all these entities is that they operate from a position of trust and are likely to gain access to confidential information of a listed entity in the course of their business.

Do Chartered Accountants Qualify as Fiduciaries?
Yes, Chartered Accountants (CAs) qualify as fiduciaries under the SEBI PIT regulations.

A CA or an audit firm, in its professional capacity, is often engaged by a listed company to perform tasks such as statutory audits, internal audits, due diligence, or other advisory services. During these engagements, they are reasonably expected to come into possession of or have access to UPSI, such as financial results, merger plans, or changes in capital structure, before it is made public.

By virtue of this "fiduciary or professional relationship" with the company, the CA is considered a connected person under the regulations. This status makes them an "insider" if they are in possession of or have access to UPSI, thereby making them liable under the regulations for any violations, such as insider trading or non-compliance with the Code of Conduct for Fiduciaries.