On Oct. 6, 2026, IND CDSL revised internal audit and concurrent audit report formats for DPs for the half year ended Sep. 30, 2026, with the following key amendments.
The checklist replaces 30 days with two working days for initiating account closure, balance transfer, or rematerialization following a beneficial owner’s account closure request.
Effective Aug. 22, 2026, a 21-calendar-day timeline applies to transmission requests; the checklist previously cited 7 days.
Nomination reminders by email and SMS change from fortnightly to bi-annually.
Signed client undertakings are now required for pledge, unpledge and confiscation.
Updated audit checks cover account reactivation and KYC-related freezing, verified consent for non-basic services demat account (BSDA) accounts and audit trails for BSDA openings, and reporting director resignations with supporting evidence.
Other new checks cover securities transmission and account closure procedures, registration identifiers for nonprofit accounts, and regulatory registration disclosures on social media.
The due date for submission of IAR for half year ended Sep. 30, 2026 is Nov. 15, 2026.
On Apr. 8, IND CDSL updated on the submission of audit reports.
IND CDSL advised depository participants (DPs) to submit the internal audit report and the concurrent audit report for risk-prone areas for the half year ended Mar. 31, 2026.
Follows IND CDSL Oct. 2024 issued revised checklist for concurrent audit, #230794.
Internal Audit Report
If the internal auditor and concurrent auditor of a DP are different, the CAR must be submitted as an attachment to the IAR.
IND CDSL updated on the scope, objectives and revised checklist for the period, and said the audit application had been enhanced to include mandatory fields requiring input from both the auditor and the DP.
DPs activated during the half year must submit an audit report covering the period from activation to Mar. 31, 2026.
The audit report must include a declaration that at least one person conducting the internal and/or concurrent audit is NISM certified; reports signed by auditors who do not meet this requirement will be treated as non-submission.
Internal auditors are required to ensure that the online dispute resolution mechanism is properly implemented and that related website compliances are thoroughly checked before submitting the IAR.
Failure to verify these aspects could result in action against both the DP and the auditor.
IAR and CAR must be submitted online; physically submitted reports will not be accepted and will be treated as non-submission.
IND CDSL may require a DP to change its auditor if report quality is unsatisfactory or the audit is not carried out as per guidelines, and advised DPs to appoint or rotate internal auditors to avoid long-term association.
Submission Date
IAR submission due date is on May 15, 2026.
Oct. 2026 Revised Reporting Format
On Oct. 6, 2026, IND CDSL revised internal audit and concurrent audit report formats for DPs for the half year ended Sep. 30, 2026, with the following key amendments.
The checklist replaces 30 days with two working days for initiating account closure, balance transfer, or rematerialization following a beneficial owner’s account closure request.
Effective Aug. 22, 2026, a 21-calendar-day timeline applies to transmission requests; the checklist previously cited 7 days.
Nomination reminders by email and SMS change from fortnightly to bi-annually.
Signed client undertakings are now required for pledge, unpledge and confiscation.
Updated audit checks cover account reactivation and KYC-related freezing, verified consent for non-basic services demat account (BSDA) accounts and audit trails for BSDA openings, and reporting director resignations with supporting evidence.
Other new checks cover securities transmission and account closure procedures, registration identifiers for nonprofit accounts, and regulatory registration disclosures on social media.
The due date for submission of IAR for half year ended Sep. 30, 2026 is Nov. 15, 2026.
Regulators
IND CDSL
Entity Types
Auditor; Depo
Reference
Com CDSL/AUDIT/DP/POLCY/2026/693 10/6/2026; Com CDSL/OPS/DP/POLCY/2026/244, 4/8/2026
