On Apr. 7, 2025, IND NSE issued circular to clearing members on submission of half yearly internal audit report for half year ended Mar. 31, 2025, to be made by email.
Where samples have been prescribed, internal auditors are required to procure the data from the clearing members; refer annexure III carefully before initiating audit.
Clearing members undertaking clearing activities for at least one trade from Oct. 1, 2024 to Mar. 31, 2025 for other stock-brokers and/or for custodian participants code (their direct trading clients or otherwise) shall carry out internal audit, submit report.
Due date to submit the internal audit report is May 31, 2025.
On Apr. 4, IND BSE reminded members on half year internal audit.
IND BSE, IND NSE reminded trading members to complete internal audit for half year ended Mar. 31, 2025, and the internal audit report must be submitted electronically.
Follows IND BSE Mar. 2024 notified about internal audit of trading members, #203334.
Outline of Notice
Independent and qualified chartered accountants, company secretaries, or cost and management accountants in practice, with no conflict of interest, can conduct audit.
Only auditors empaneled under specified framework are allowed to certify the report.
Members must comply with IND SEBI circular re appointment and rotation of internal auditors; auditors must take note of updated sampling criteria and methodology.
For each not complied observation, auditors must report number of instances verified, non-compliant cases, percentage of non-compliance, and amount or value involved.
Penalties for late or non-submission apply as per Nt 20220601-52 or relevant circulars; members must confirm that margin shortfall penalties are not passed to clients.
Confirmation must be digitally signed, submitted before entering auditor details in BSE Electronic Filing System (which is also referred to as BEFS); audit certificates must include unique document identification number (which is also referred to as UDIN).
Reports not adhering to IND BSE guidelines will be treated as non-submission.
Quality of audit reports will be reviewed, necessary action will be taken for substandard reports; auditors must retain all working papers, records for verification.
Submission is considered complete only after BSE sends an acknowledgment email.
Effectiveness
The internal audit report must be submitted by May 31, 2025, only through BEFS.
Apr. 7, 2025 IND NSE Clearing Members Audit
On Apr. 7, 2025, IND NSE issued circular to clearing members on submission of half yearly internal audit report for half year ended Mar. 31, 2025, to be made by email.
Where samples have been prescribed, internal auditors are required to procure the data from the clearing members; refer annexure III carefully before initiating audit.
Clearing members undertaking clearing activities for at least one trade from Oct. 1, 2024 to Mar. 31, 2025 for other stock-brokers and/or for custodian participants code (their direct trading clients or otherwise) shall carry out internal audit, submit report.
Due date to submit the internal audit report is May 31, 2025.
Regulators
IND BSE; IND NSE
Entity Types
Auditor; B/D; Exch
Reference
Cir 07/2025, NCL/CMPL/67482, 4/7/2025; Cir 21/2025, NSE/INSP/67463, Nt 20250404-63, 4/4/2025
Functions
Audit; Compliance; Financial; Record Retention; Reporting; Trading; Treasury
