IND CDSL Internal Audit Reporting


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
Functions Audit; Compliance; C-Suite; Financial; Operations; Reporting
Countries India
Category
State
Products Securities
Regions AP
Rule Type Final
Rule Date 4/3/2023
Effective Date 11/15/2024
Rule Id 169077
Linked to Rule :65245
Reg. Last Update 10/8/2024
Report Section International

Last substantive update on 10/11/2024