|
Highlights of
NSE Circular dated October 26, 2021
Internal Audit of Trading members / Clearing members
NSE has issued a circular on Internal Audit of Trading members / Clearing members, specifying
formats and other information. The last date of submission of the Internal
Audit Report is November 30, 2021.
Further,
Members are also requested to note that:
- Members shall also be required to submit the
details of their Inventory of Assets as on September 30, 2021, at the
following path in the New ENIT: Compliance > Inventory of assets >
Inventory of Assets submission. Manual for the same is enclosed as
Annexure VI to this circular. The details shall subsequently be
certified by Member’s internal Auditor along with the Internal Audit
Report. Going forward the submission shall be made on an annual basis as
on March 31, XXXX.
- The auditor shall verify and certify the
“Inventory of assets” data submitted by the members in member portal
(ENIT-INV-ASSETS-AUDITOR). The auditor shall not be able to submit the
Internal Audit Report without certifying the same. Detailed instructions
in this regard are provided in Annexure VI to this circular.
- Exchange has made available the data
submitted by members to Exchange towards Enhanced Supervision, List of
Bank/ Demat accounts reported and other weekly submissions such as
Client level cash & cash equivalent balances, bank account balances,
Holding Statement for the sample dates/ period in the respective
Auditor’s login for the purpose of verification.
- Details of sample dates/clients applicable
for certain checklist points have been made available in respective
Auditor’s login to enable the auditor to select samples as per the
Sampling Criteria 1, 2 and 3 prescribed in Annexure III. Auditors are
advised to get their registration done from members and retrieve the
aforesaid data and samples from their respective logins before
initiating the audit.
- The samples for parameters/ criteria other
than provided above, shall be as per the “methodology for sample
selection” prescribed in Annexure III, and the data required for the
same can be sourced from the member.
- There are certain changes in the sampling
criterion and methodology for sample selection compared to previous half
year submission. Auditors are advised to refer Annexure III carefully
before initiating the audit.
- 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.
- Further, in order to ease the submission
process of Internal Audit, a ‘Test Page’ to check Digital Signature has
been provided for auditors/members right before submitting the Internal
Audit report. The path for the same is captured in the detailed manual (Refer
Annexure V).
- As per Exchange circular NSE/COMP/42287
dated October 03, 2019, the Internal Audit Certificate shall mandatorily
contain Unique Document Identification Number (UDIN). A provision to
enter the UDIN by the Auditor is available in the system.
NSE Circular
no. NSE/INSP/50110 Dated October 26, 2021 is enclosed herewith for your
ready reference.
In case of any
clarification or assistance required in implementation of this circular you
may contact
VANDANA VANIA (SecMark
Consultancy Ltd.)– van...@secmark.in
/ 9223303460
SHARDUL SHAH - shard...@secmark.in/ 9869265949 / 9653415968
|
