On Apr. 3, IND CDSL issued communique on internal audit reporting.
IND CDSL shared format for report on internal audit, for registrar and transfer agents.
Follows IND CDSL Sep. 2019 issued revised format for audit reporting, see #65245.
Document dated Apr 3, 2023, was received on Apr. 10, 2023 due to a fixed feed.
Report
RTAs must conduct internal audits of depository operations every six months.
Audits are required to be conducted by a qualified chartered accountant, company secretary, or cost and management accountant holding a certificate of practice.
Annexure A provides information on the scope, objectives, mandatory contents, and checklist for the internal audit report for the half-year ended Mar. 31, 2023.
The audit report should be submitted online per prescribed procedure; physically submitted IARs will not be accepted and shall be considered as non-submission.
RTAs must present internal audit findings along with management comments to their board of directors for depository operations in line with IND CDSL bye laws 12.10.
Effectiveness
The deadline for submission of the internal audit report (IAR) is May 15, 2023.
RTAs activated during the half-year ended Mar. 31, 2023 must submit the internal audit report for the period from their activation date until the end of the half-year.
Sep. 2023 Report Submission
On Sep. 28, 2023, IND CDSL required registrar and transfer agents to submit their internal audit report for the half year ended Sep. 30, 2023, by Nov. 15, 2023.
RTAs activated during the half-year ended Sep. 30, 2023 must submit the internal audit report for the period from the date of activation until the end of the half-year.
The report should contain a declaration that at least one person conducting the internal audit of the RTA, including in-house RTAs, is NISM Series IIA certified.
Apr. 3, 2024 Format for Half-Year Report
On Apr. 3, 2024, IND CDSL wrote to registrar and transfer agents (RTAs) to provide scope, objectives, mandatory contents and checklist of the internal audit report (IAR).
Which will be applicable for the internal audit for the half year ended Mar. 31, 2024.
Those details are in annexure A; due date for submission of IAR is May 15, 2024.
Annexure A contains some changes from the IND CDSL memo (of Sep. 28) above.
Those changes are in mark-up, and include requirement to check particulars re alternative investment funds (AIFs), and particulars re action taken report (ATR).
RTAs are required to bring this to the notice of internal auditors, ensure compliance.
Apr. 8, 2024 Revised Format
On Apr. 8, 2024, IND CDSL also informed depository participants of the revised format.
Reminded them to submit IAR for half year ended Mar. 31, 2024 by May 15 2024.
It said physically submitted IAR/ report concurrent audit (CAR) are not accepted.
Oct. 2024 Report Submission Reminder
On Oct. 4, 2024, IND CDSL reminded RTAs to submit the internal audit report (IAR) for half year ended Sep. 30, 2024 on or before Nov. 15, 2024, or be subject to penalties.
RTAs activated during the half-year ended Sep. 30, 2024 should submit the IAR pertaining to the period from the date of activation until the end of the half year.
The report should contain a declaration that at least one person conducting the internal audit of the RTA, including in-house RTAs, is NISM Series IIA-certified.
Document dated Oct. 4, 2024, received from IND CDSL Oct. 7, summarized on Oct. 9.
Oct. 8, 2024 Revised Format
On Oct. 8, 2024, IND CDSL revised format on report on internal audit and concurrent audit of risk prone areas of DP operations for half year ended Sep. 30, 2024.
The scope, objectives, and revised checklist of internal audit report are applicable for the internal/concurrent audit for the half year ended Sep. 30, 2024.
If internal, concurrent auditor is the same, a consolidated report must be submitted; if different, separate reports must be submitted for internal audit and concurrent audit.
Regulators
IND CDSL
Entity Types
Auditor; B/D; Depo
Reference
Com CDSL/AUDIT/DP/POLCY/2024/595, 10/8/2024; Com CDSL/AUDIT/RTA/POLCY/2024/173, 10/4/2024; Com CDSL/AUDIT/DP/POLCY/2024/191, 4/8/2024; Com CDSL/AUDIT/RTA/POLCY/2024/52, 4/3/2024; Com CDSL/AUDIT/RTA/POLCY/2023/209, 9/28/2023; Com CDSL/AUDIT/RTA/POLCY/2023/66, 4/3/2023; ESG
