On Oct. 8, 2026, IND BSE issued a notice on system audit of trading members using or offering algorithmic trading for the period ending Sep. 30, 2026.
Trading members must submit audit plans by Nov. 5, 2026, and preliminary audit reports by Nov. 30, 2026, for the half-yearly period covering Apr.-Sep. 2026.
Action taken reports (ATR) are due by Feb. 28, 2027, where relevant, and must be validated by the same auditor who conducted the audit.
Reports must be certified by auditors empaneled with IND BSE, starting with the half year ending Sep. 30, 2026.
Audit report submission requires auditors’ algorithmic-trading, version-confirmation, assessment, and physical-visit submissions; members must then provide management comments and submit the report to IND BSE.
Using algorithmic trading identifiers with reported non-compliance or significant deficiencies for trading prior to the submission of the audited/rectified ATR attracts disciplinary action under IND BSE Notice No. 20260417-45, see #272695.
Auditors must confirm the latest version of each registered vendor/in-house product is live and record the version number.
Updated terms of reference (ToR) (Annexure B) treat all areas as "Critical".
Qualified stockbrokers need Governing Board and Standing Committee on Technology (SCOT) or equivalent Technology Committee (TC) approval for reports/ATR; other members need proprietor/partner/director approval.
Other members require proprietor/partner/director or equivalent responsible official approval for reports/ATR through SCOT or TC.
Document dated Oct. 8, 2026, received from IND BSE Oct. 9, summarized on Oct. 14.
On May 11, IND BSE activated system audit module for members.
IND BSE issued notice activating the system audit reporting module for trading members for the period ending Mar. 31, 2026.
Follows IND SEBI Jan. 2026 issued guidelines for conduct of system audit, #242271.
Document dated May 11, 2026, was received on May 19 due to a fixed feed.
Outline of Notice
Trading members must submit audit plans by Jun. 5, 2026 and preliminary audit reports by Jun. 30, 2026, for half-yearly, yearly, and once-in-two-years audit periods.
Action taken reports for all three audit period categories are due by Sep. 30, 2026; the half-yearly period covers Oct. 2025–Mar. 2026, yearly covers Apr. 2025–Mar. 2026.
Members must access the reporting module via the BEFS portal; auditors must log in separately via the Cymmetri portal.
Oct. 2026 Algorithmic Trading Half-Year Audit
On Oct. 8, 2026, IND BSE issued a notice on system audit of trading members using or offering algorithmic trading for the period ending Sep. 30, 2026.
Trading members must submit audit plans by Nov. 5, 2026, and preliminary audit reports by Nov. 30, 2026, for the half-yearly period covering Apr.-Sep. 2026.
Action taken reports (ATR) are due by Feb. 28, 2027, where relevant, and must be validated by the same auditor who conducted the audit.
Reports must be certified by auditors empaneled with IND BSE, starting with the half year ending Sep. 30, 2026.
Audit report submission requires auditors’ algorithmic-trading, version-confirmation, assessment, and physical-visit submissions; members must then provide management comments and submit the report to IND BSE.
Using algorithmic trading identifiers with reported non-compliance or significant deficiencies for trading prior to the submission of the audited/rectified ATR attracts disciplinary action under IND BSE Notice No. 20260417-45, see #272695.
Auditors must confirm the latest version of each registered vendor/in-house product is live and record the version number.
Updated terms of reference (ToR) (Annexure B) treat all areas as "Critical".
Qualified stockbrokers need Governing Board and Standing Committee on Technology (SCOT) or equivalent Technology Committee (TC) approval for reports/ATR; other members need proprietor/partner/director approval.
Other members require proprietor/partner/director or equivalent responsible official approval for reports/ATR through SCOT or TC.
Document dated Oct. 8, 2026, received from IND BSE Oct. 9, summarized on Oct. 14.
Regulators
IND BSE
Entity Types
Auditor; B/D; Corp; Exch; IA
Reference
Nt 20261008-50, 10/8/2026; Nt 20260511-23, 5/11/2026; Nt 20260417-45, 4/17/2026; ESG;
