SEBI vide Circular No. MIRSD/DPSIII/Cir-26/08 dated August 22, 2008 and Exchange vide Notice No. 20080825-2 dated August 25, 2008 and Notice No. 20081022-30 dated October 22,2008 made it mandatory for all Trading Members/Clearing Members to carry out complete internal audit on a half yearly basis. Further, SEBI vide Circular No. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, prescribed additional requirements for internal audit, viz. appointment, rotation of internal auditors, formulation of objective sample criteria, monitoring of quality of internal audit reports, timelines for submissions of internal audit reports, etc. Further, Exchange vide Notice No. 20220221-65 dated February 21, 2022 and 20221017-42 dated October 17, 2022, has prescribed additional eligibility criteria for the auditors qualified to conduct internal audit of members.
This is has reference to the Exchange Notice No. 20231003-61 dated October 03, 2023, wherein the Exchange had revised the eligibility criteria and informed the Members that the applicability and guidance on the empanelment of auditors shall be communicated through a separate circular.
Accordingly, the eligibility criteria and detailed procedure for empanelment of the auditors is enclosed as Annexure 1.
The Audit Firms who meet the prescribed eligibility criteria may submit an online application for empanelment for undertaking assignments relating to internal audit of Trading Members of the Exchange by using the following URL on the Exchange website -
https://www.bseindia.com
The Audit Firms shall submit an Undertaking-cum-Affidavit to the Exchange in the prescribed format enclosed as Annexure 2. The said format may also be downloaded from the aforementioned link.
Members may please note that the Exchange shall accept the internal audit report certified by empanelled auditor only with effect from the half year ending March 31, 2024, onwards.
All Members are advised to take note of the above and bring the provisions of this Circular to the notice of their respective internal auditors and ensure compliance of the above requirement.
In case of any clarifications, members may contact us on details given as under:
For and on behalf of BSE Ltd.
Hiteshkumar Desai Richa Ghosh
General Manager Asst. Gen . Manager
Inspection Inspection
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