On Apr. 8, IND CDSL issued circular regarding internal audit format.
IND CDSL said registrar and transfer agents (RTAs), including in-house RTAs, must conduct an internal audit of their depository operations every six months, per Bye law.
Follows IND CDSL Apr. 2023 issued communique on internal audit reporting, #169077.
Internal Audit Requirement
Internal audit must be carried out by a qualified chartered accountant, company secretary, or cost and management accountant who holds valid certificate of practice.
A duly signed internal audit report (IAR) must be submitted to the depository.
The scope, objectives, mandatory contents, and checklist for the audit report are provided in annexure-A and apply to the audit for the half-year ending Mar. 31, 2025.
The IAR for the period ending Mar. 31, 2025 must be submitted by May 15, 2025; RTAs, issuers must meet the submission deadline; late submissions will incur penalties.
The IAR must be submitted online; physical submissions will not be accepted.
RTAs that were activated during the half-year ending Mar. 31, 2025 must submit an audit report covering operations from the activation date to the end of the period.
Audit findings and management comments must be presented to the RTA’s board.
The report must confirm that at least one auditor is National Institute of Securities Markets (NISM) series IIA certified; otherwise, it will be rejected as a non-submission.
Internal auditors must verify the implementation of online dispute resolution (ODR) mechanism, ensure related website compliances are met before submitting the report.
Non-compliance with ODR verification may result in action against both RTA, auditor.
Effectiveness
The deadline for submission of the internal audit report is May 15, 2025.
