On Sep. 21, IND ICCL issued notice re half yearly report submission.
IND ICCL said members involved in clearing activities for other stock-brokers and/or custodian participants must conduct internal audit, covering Apr. 1 to Sep. 30, 2023.
Details
For interoperable segments clearing members who have selected ICCL as designated clearing corporation are required to submit the report as per the requirement.
Internal audit must be carried out by professionals like CPA, company secretaries, or cost and management accountants who are independent, without conflicts of interest.
Auditors must have at least 3 years of audit experience, no regulatory restrictions, and the right certifications related to stockbrokers and securities intermediaries.
Process and guidelines for submitting audit reports, including the format of internal audit certificate and report, will be communicated separately through a circular.
Effectiveness
Due date to submit the internal audit report is within two months from the end of half year i.e., for the half year ended Sep. 30, 2023, the due date is Nov. 30, 2023.
Penalties/disciplinary actions for late/non-submission of the report are prescribed.
Mar. 2024 Reminder
On Mar. 22, 2024, IND ICCL said clearing members must conduct internal audits for the period Oct. 1, 2023 to Mar. 31, 2024, and submit reports to IND ICCL.
Specific penalties for late/non-submission of internal audit reports are outlined, including daily charges and possible suspension of clearing facilities.
Penalties for late/non-submission include daily charges, new registration prohibition, and segment disablement; repeat violations result in monetary penalties, escalation.
Apr. 2024 Half-Yearly Report
On Apr. 1, 2024, IND ICCL issued reminder that due date for submission of internal audit report is within two months from the end of the half year ended Mar. 31, 2024.
The internal audit certificate should be digitally signed, and auditors are required to procure data from clearing members in cases where samples have been prescribed.
For each not complied observation, the auditor shall mandatorily provide the no. of instances verified and amount/value involved where non-compliance is observed.
The deadline for the internal audit report is May 31, 2024.
Regulators
IND ICCL
Entity Types
Auditor; B/D; Depo
Reference
Nt 20240401-32, 4/1/2024; Nt 20240322-55, 3/22/2024; Nt 20230921-16, 9/21/2023
