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NOTICES
Notice No.   20241014-19   Notice Date   14 Oct 2024
Category   Settlement/RMS   Segment   General
Subject   Submission of Half Yearly Internal Audit Report by Clearing Members
Attachments   Annexure II.xls ; User Manual.docx ; Annexure I.docx ; Annexure IV.xls ; Annexure III.docx ;
Content

To All Clearing Members (Clearing for other Stockbroker and/or Custodial Participants Code)

 

This is with reference to ICCL’s Notice no. 20240322-55 dated March 22, 2024 and ICCL’s Notice no. 20240401-32 dated April 01, 2024 wherein all Clearing Members are required to carry out complete Internal Audit for the half year ended September 30, 2024.

Clearing Members are required to upload the necessary documents online through ICCL’s Electronic Filing system (IEFS). The path for submission of Internal Audit Report is as below:

https://iefs.bseindia.in >> Internal Audit Report (Please refer attached -User Manual)

Further, Internal Auditors are advised to take note of below while carrying out the Audit:

 

1.      In cases where samples have been prescribed, auditors are required to procure the data from the clearing members. Auditors are advised to refer Annexure III carefully before initiating the audit. The samples for parameters/ criteria shall be as per the “Guidelines on sample selection” prescribed in Annexure III and the data required for the same may be sourced from the member.

2.      For each “Not complied” observation, wherever applicable, the auditor shall mandatorily provide the “no. of instances verified” and “Amount/value involved where non-compliance is observed” while submitting the Report. Further, for each “Not Applicable” Points, appropriate justifying remarks are mandatory to be provided.

3.      Internal auditors are required to give the details of the sample verified (sample date, shortlisted sample etc) wherever applicable. The formats for the same are given in Annexure IV.

4.      The Internal Audit Certificate (Annexure I) should be digitally signed.

5.      The Annexure II which is the Format of Internal Audit Report shall be submitted in PDF document. The PDF document shall be digitally signed.

6.      Auditors are required to verify the action letters issued by the Clearing Corporation for last 6 months (i.e. for the period from April, 2024 to September, 2024), verify the compliance by the Clearing Member with respect to the violations mentioned in these action letters and provide the comments at Point No. K(77) of the internal audit checklist.

 

Please find enclosed the following Annexures applicable for the Internal Audit Report for half year ended September 30, 2024:

·         Internal Audit Certificate - Annexure I

·         Format of Internal Audit Report - Annexure II

·         Guidelines on sample selection & other points to be noted - Annexure III

·         List of samples verified - Annexure IV

Please note that the internal audit report with complete annexures shall be treated as valid submission to ICCL.

Further, as advised by SEBI and to enhance the ease of doing compliance and reduce operational difficulties faced by Members/Audit Firms, it has been decided that the auditors empanelled with any of the Exchange(s), shall be eligible to conduct internal audit of the Clearing Members of any of the Clearing Corporations

Clearing members undertaking clearing activities for atleast one trade during the period from April 01, 2024 to September 30, 2024 for other stock-brokers and/or for custodian participants code (their direct trading clients or otherwise) are required to carry out Internal Audit and submit the report to ICCL.

It is to be noted that the due date to submit the Internal Audit Report is within two months from the end of the half year ended September 30, 2024 that is November 30, 2024.

The penalties/disciplinary actions for late/non-submission of the Internal Audit Report shall be as per ICCL notice no.        20240322-55 dated March 22, 2024. The penalties/disciplinary action for non-compliances reported in the Internal Audit Report shall be as prescribed by ICCL circular no. ICCL notice no. 20231229-11 dated December 29, 2023 or any other relevant circular that may be issued by ICCL from time to time.

 

In case of any queries members may contact the following officials

Name of Officials

Direct Line Number

Email

Sneha Sahadevan

022-22725075

iccl.membership@icclindia.com

Praveen Poojary

022-22728788

 

For and on behalf of
Indian Clearing Corporation Limited

 

Anita Bhatia
Chief Regulatory & Compliance Officer

 

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