On Nov. 21, IND NSE reminded re system audit for type III members.
IND NSE issued reminder for the submission of the system audit report for the half year ended Sep. 30, 2023, with reference to circular NSE/INSP/58999 dated Oct. 19, 2023, requiring all trading members to submit system audit report by Nov. 30, 2023.
Document dated Nov. 21, 2023, received from IND NSE Nov. 28, summarized Nov. 30.
Type III Members
Submission of the system audit report is mandatory for all trading members who have traded using algorithm software type III for all NNF trading software across segments.
Submitted electronically via ENIT portal by Nov. 30, to avoid penal/disciplinary action.
Apr. 2024 Audit for Trading Members
On Apr. 26, 2024, IND NSE issued requirements, guidelines for system audits; trading members are required to conduct system audits for period ending Mar. 31, 2024.
Non-compliance issues identified in audits require a corrective action taken report.
In addition, compliance status of each terms of reference item must be reported as compliant, non-compliant, or not applicable with justifications for non-applicability.
Auditors need specific qualifications, experience in IT audit; auditors re-appointment rules include maximum of 3 successive audits, followed by a cooling-off period.
Specific system controls, software change management, risk management, and other technical and operational checks are detailed across the various annexures.
Requested trading members take note of circular NSE/INSP/58755 dated Oct. 5, 2023.
Half-yearly, yearly and biennial preliminary audit reports are due by Jun. 30, 2024.
In addition, respective corrective action taken reports are due by Sep. 30, 2024.
Document dated Apr. 26, 2024, received from IND NSE Apr. 29, summarized Apr. 30.
Oct. 2024 Reporting Reminder
On Oct. 8, 2024, IND NSE reminded members to conduct system audit for period from Apr. 1, 2024 to Sep. 30, 2024; applies to all NNF trading software across segments.
Auditors must confirm whether trading members are using latest version of vendor/in-house developed products, applications, reporting version in screen-based submission.
System audit report can only be submitted after Algo MIS report, version confirmation report are completed; final submission must include management comments.
Auditors must provide status for each term of reference (TOR) item, compliant/non-compliant/not applicable; justification is required for any non-applicable TOR item.
Preliminary audit report is due by Nov. 30, 2024, action taken report, by Feb. 28, 2025.
Document dated Oct. 8, 2024, received from IND NSE Oct. 9, summarized Oct. 14.
