Proper monitoring of end use of funds even at the last level of corporate structure is important to avoid instances like IL&FS, said Ajay Tyagi. SEBI chief highlighted the recent regulatory diktat that made such audit mandatory for listed firms and suggested that similar framework should be made for unlisted companies. He said, One of the issues that this episode has brought out is the inter-connectedness arising as a result of complex corporate subsidiary structures and how the maze of subsidiaries facilitate masking the end use of funds. Recently, SEBI has mandated that the statutory auditor of a listed entity shall undertake a limited review of the audit of all the entities/ companies whose accounts are to be consolidated with the listed entity. Similar provision needs to be made applicable even for unlisted holding companies, he added.