Sebi has streamlined the inspection framework for stock brokers, depository participants, investment advisers and research analysts, as the regulator moves toward fewer but more targeted checks from FY27.The regulator said inspections of stock brokers and depository participants will now be conducted jointly by stock exchanges and depositories. The revised approach has been adopted after discussions with market infrastructure institutions and the supervisory body for investment advisers and research analysts.The move is aimed at reducing repeated inspection visits for compliant market intermediaries while strengthening oversight of entities that show higher risk signals.Sebi said the number of inspections to be carried out by the regulator in FY27 has been rationalised to about one-third of the inspections conducted in the previous financial year. This takes into account the regular inspections already carried out by stock exchanges and depositories.The regulator will discontinue repetitive annual comprehensive inspections of compliant entities, especially qualified stock brokers. However, entities that repeatedly appear across shortlisting parameters, carry high risk scores or trigger multiple exchange alerts will be prioritised for inspection.More weight to alerts and complaintsSebi said the new framework will use a dynamic approach to identify and shortlist entities for inspection. The regulator will give greater weight to alerts generated by exchanges, investor complaints and social media inputs while assigning priority to recent possible violations. Shortlisting will now be done on a quarterly basis.The regulator will also conduct joint inspections of entities with multiple intermediary registrations through different Sebi departments, wherever feasible. This is intended to reduce the number of separate inspection visits during the financial year.Inspections will also be based on market intelligence and references, including inputs received from regional and local offices. Sebi said these checks may cover themes such as technical glitches, cyber incidents and authorised persons of stock brokers.The changes mark a shift from routine inspection to risk-based supervision. For compliant entities, the framework could reduce regulatory friction. For higher-risk intermediaries, it could mean sharper and faster scrutiny.The regulator said the steps are intended to improve ease of doing business for intermediaries while maintaining robust supervision of the market.