Also follows IND CDSL Oct. 2022 issued revised format for internal audit, see #65245.
Background
In Bye law 10.3, each participant is required to have depository operations audited by a qualified chartered accountant, company secretary or cost management accountant.
Based on the audit, copy of the report shall be submitted to NSDL on half-yearly basis.
Guidelines related to scope of the audit and format of the audit report were provided in circular no. NSDL/POLICY/2022/136 of Oct. 3, 2022, see #65245 for further details.
The audit report format has been modified as annexure 1 in track change mode and as annexure 2 (without changes), with broad objectives for audit as annexure 3.
Key Points
Audit should cover all facets of the depository operations; auditor may expand the scope of audit/add more audit points to achieve objectives as shown in annexure 3.
Participants are required to submit the audit report to NSDL by Nov. 15, 2023 for audit period Apr. 1 to Sep. 30, and May, 15, 2024 for audit period Oct. 1 to Mar. 31, 2023.
Participants who are operational for less than 3 months in an audit period can submit the audit report for that audit period along with the audit report for next audit period.
Format provided is applicable for audit period Oct. 1, 2022 to Mar. 31, 2023 onwards.
Effectiveness
Participants are required to submit the audit report to NSDL by Nov. 15, 2023.
Oct. 2023 Report Format
On Oct. 4, 2023, IND NSD issued a reminder to depository participants re the circular issued in Apr., to submit a copy of internal audit report to NSD on half yearly basis.
Audit report format has been modified and enclosed as annexure 1 and 2, while broad objectives/guidelines for the internal/concurrent audit are enclosed as annexure 3.
This format is applicable for audit period Apr. 1, 2023 to Sep. 30, 2023 and onwards.
Reports which are not as per guidelines will be treated as non-submission of report.
Document dated Oct. 4, 2023, received from IND NSD Oct. 5, summarized on Oct. 9.
Apr. 2024 Audit Report Format
On Apr. 8, 2024, IND NSD issued a circular on revision of the audit report format.
It is applicable for audit period from Oct. 1, 2023 to Mar. 31, 2024 and onwards.
Participants are required to submit the audit report to IND NSD by May 15, 2024.
Jun. 2024 Mandatory Requirements
On Jun. 13, 2024, IND NSD enhanced the module of auditor master on NSDL e-PASS, whereby capturing the details of NISM certificate of the auditor (i.e. certificate number and validity date) and address of the audit firm are now made mandatory.
Participants are requested to update the above mentioned details in the auditor master module for existing auditors and for new auditors appointed before submission of internal and concurrent audit report (IAR/CAR) through e-PASS.
Oct. 2024 Amended Format
On Oct. 10, 2024, IND NSD said the audit report format along with scope for the internal as well as concurrent audit of depository operations has been modified.
The same was issued for registrar and transfer agents (RTAs) and issuers on Oct. 7, with cover page, IAR checklist, objectives of audit, but NSD did not publish circular.
Participants shall ensure that an internal audit in respect of its depository operations is conducted at intervals of not more than six months by a prescribed person.
A copy of the internal audit report shall be submitted to IND NSD on half yearly basis.
Audit should cover all facets of the depository operations and the auditor may expand the scope of audit/add more audit points to achieve the objectives issued by IND NSD.
The due date for submission of report to IND NSD for audit period from Apr. 1 to Sep. 30, is Nov. 15; and for the period Oct. 1, to Mar. 31, the report is due on May 15.
The report format provided is applicable for audit period Apr. 1, 2024 to Sep. 30, 2024.
