On Apr. 8, 2025, IND NSD issued a circular on submission of audit reports by May 15, 2025 for the audit period of Oct. 1, 2024-Mar. 31, 2025 based on the specified forms.
Include cover page with and without track change; activity wise sampling details with and without track change; and objectives of audit of issuer/RTA with direct operations.
IND NSD noted that internal audit reports which did not follow the guidelines will be treated as non-submission, and it has the right to advise RTAs/issuers having direct connectivity to change their auditor where the quality of reports is not satisfactory.
Reports must be submitted in electronic form via e-PASS; RTAs/issuers having direct connectivity should update their auditor’s details before report submission via e-PASS.
Document dated Apr. 8, 2025, received from IND NSD Apr. 9, summarized on Apr. 11.
IND NSD informed that every issuer or its registrar and transfer agent, is required to have its operations audited by a qualified chartered accountant.
Or a secretary, cost and management accountant holding a practice certificate.
This follows IND NSD's extended date for internal audit report see rule #55445.
There was also a policy issued for the internal and concurrent audit see #65592.
Requirements
Audit should cover all facets of the RTA/issuer having direct connectivity operations.
Auditor may add more audit points to achieve the objectives enclosed as annexure 3.
RTAs/issuers having direct connectivity are hereby informed that internal audit report which is not as per guidelines will be treated as non-submission of the report.
Internal audit reports must be submitted in electronic form through e-PASS platform.
Annex
The audit report format has been modified and enclosed as annexure 1 and 2.
The broad objectives guidelines for the internal audit are enclosed as annexure 3.
Effectiveness
Audit period from Apr. 1, 2022 to Sept. 30, 2022 is due Nov. 15, 2022.
Audit period from Oct. 1, 2021 to Mar. 31, 2022 is due May 15, 2022.
RTAs/Issuers operational for less than three months in an audit period can submit the audit report for that period along with the next audit period’s report.
Internal audit report to be submitted in line with Nov. 3, 2020 circular, see #65592.
The new format is applicable from audit period Apr. 1 to Sep. 30, 2023, onwards.
Audit period from Apr. 1, 2023 to Sept. 30, 2023 is due Nov. 15, 2023.
Audit period from Oct. 1, 2023 to Mar. 31, 2023 is due May 15, 2024.
Document dated Oct. 3, 2023, received from IND NSDL Oct. 10, summarized Oct. 12.
Apr. 2024 Direct Connectivity
On Apr. 5, 2024, IND NSD issued circular regarding the internal audit of registrars and transfer agents (RTAs) and issuers that have direct connectivity with IND NSD.
RTAs/issuers having direct connectivity should note that the audit report format has been modified and the audit should cover all facets of the connectivity operations.
Modifications to the audit report format in are set out in clean/track changes versions.
The broad objectives/guidelines for the internal audit are included as an annexure.
Auditor may expand the scope of audit or add more audit points as deemed relevant.
For the audit period of Apr. 1, to Sep. 30, the deadline for the report is Nov. 15.
For the audit period of Oct. 1, to Mar. 31, the deadline for the report is May 15.
RTAs/issuers having direct connectivity which remain operational for less than three months within the audit period can submit a report in the subsequent audit period.
This circular is effective for the audit period Oct. 1, 2023 to Mar. 31, 2024.
Jun. 2024 Enhanced Module
On Jun. 14, 2024, IND NSD issued circular with respect to its circular of Apr. 5 above, and informed registered transfer agents (RTAs) or issuers having direct connectivity that IND NSD has enhanced the module of auditor master on IND NSD e-PASS.
RTAs/issuers having direct connectivity are requested to update specified details.
Namely, in auditor master module for existing auditors and for new auditors appointed hereafter before submission of Internal Report (IAR) through e-PASS; the procedure for addition/modification/deactivation of auditor login ID is enclosed at annexure A.
Document dated Jun. 14, 2024 received from IND NSD Jun. 18, summarized Jun. 21.
Oct. 2024 Report Format Modified
On Oct. 7, 2024, IND NSD said the audit report format has been modified; minor changes are set out in Annexes 1 and 2, objectives/guidance for audit in Annex 3.
RTAs and issuers having direct connectivity are advised to take note of revised format.
Document dated Oct. 7, 2024, received from IND NSD Oct. 25, summarized Oct. 29.
Apr. 2025 Report Submission
On Apr. 8, 2025, IND NSD issued a circular on submission of audit reports by May 15, 2025 for the audit period of Oct. 1, 2024-Mar. 31, 2025 based on the specified forms.
Include cover page with and without track change; activity wise sampling details with and without track change; and objectives of audit of issuer/RTA with direct operations.
IND NSD noted that internal audit reports which did not follow the guidelines will be treated as non-submission, and it has the right to advise RTAs/issuers having direct connectivity to change their auditor where the quality of reports is not satisfactory.
Reports must be submitted in electronic form via e-PASS; RTAs/issuers having direct connectivity should update their auditor’s details before report submission via e-PASS.
Document dated Apr. 8, 2025, received from IND NSD Apr. 9, summarized on Apr. 11.
