This is further to the Exchange Notice no. 20230406-59 dated April 06, 2023 wherein all trading members were directed to submit Internal Audit Report for half year ended March 31, 2023 to the Exchange in electronic form through BEFS (BSE Electronic Filing System). No documents are to be submitted in physical form.
Members may note that the Internal Audit Report for the half year ended March 31, 2023 is to be submitted on or before May 31, 2023 in electronic form only through BEFS (BSE Electronic Filing System) and the module for submission is now enabled at following link:
https://befs.bseindia.com -> Internal Audit Report
Please find enclosed herewith the following Annexures applicable for the Inter Audit report for half year ended March 31, 2023
Ø Internal Audit Certificate – Annexure I
Ø Format for Internal Audit Report – Annexure II
Ø Guidelines on Sample selection & other points to be noted – Annexure III
Ø List of Indicative Processes & references of SEBI/Exchange circulars – Annexure IV
Ø User Manual for Auditors – Annexure V
Ø User Manual for Members – Annexure VI
Ø Guidelines for IAR XBRL Report Sheet & Audit Process – Annexure VII
Internal Auditors are advised to take note that for each “Not complied” observation, wherever applicable the auditor shall mandatorily provide the “no. of instances verified”, “% of instances where non-compliance is observed” and “Amount/value involved where non-compliance is observed” while submitting the Audit report.
The penalties/disciplinary actions for late/non-submission of the Internal Audit Report and non-compliances observed in the Internal Audit Report, shall be applicable as per the Exchange notice no. 20220601-52 dated June 01, 2022, or any other relevant circular that may be issued by the Exchange from time to time.
Members’ attention is drawn to Exchange notice no. 20220623-52 dated June 23, 2022, wherein it has been prescribed that the trading member shall submit an undertaking to Exchange on half yearly basis along with Internal Audit Report confirming that the penalty levied by clearing corporations on account of “short/non-collection of upfront margins from clients” is not being passed on to respective clients under any circumstances. Accordingly, the facility to submit the same has been provided while entering the Auditor Details under the Internal Audit Report link on BEFS. The undertaking submitted by the member shall be digitally signed by the proprietor or partner or the designated director of the company. Member shall not be able to submit the Auditor details on BEFS unless the said undertaking is submitted on BEFS.
It may be noted that submission of Internal Audit Report shall be considered complete only after Member submits the report to the Exchange and receives an acknowledgment email. Saved reports/reports submitted by auditor will not be considered as final submission to Exchange.
In case of any queries/clarifications, you may reach us on the following contact details.
For and on behalf of BSE Ltd.
Jyoti Thukral Josephine Baretto
Sr. Manager Manager
Brokers’ Supervision Brokers’ Supervision |