NCDEX Circular on - Ease of Doing Compliance - Submission of Action Taken Report for non-compliance(s) reported in the Internal Audit Report.

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Date of Issue: 03-12-2025  
          
Issuer: NCDEX

 Ease of Doing Compliance - Submission of Action Taken Report for non-compliance(s) reported in the Internal Audit Report.

Highlights of NCDEX Circular dated December-03-2025

All members are required to submit the internal audit reports to the Exchange on a half-yearly basis i.e. for the half year ended 31st March and 30th September by 31st May and 30th November respectively in accordance with SEBI Circular Ref. No. MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016.

In accordance with the penal provisions prescribed by the Exchange from time to time, monetary penalty/disciplinary actions are initiated against the trading members for the non-compliance(s) reported in the internal audit reports, and the members are also advised to close the noncompliance(s) reported in the internal audit reports in accordance with Clause 13.2.4 and Clause 13.2.5 of SEBI Master Circular dated June 17, 2025.

In order to provide ease of doing compliance and to ensure timely closure of the non-compliances reported in the Internal Audit Reports, the Exchanges in joint consultation with SEBI have introduced a framework for addressing such non-compliances through the submission of Action Taken Report.

Under this prescribed framework,

• Members shall be required to close all non-compliances reported in the internal audit report within 2 months from the end of due date of submission of Internal Audit Report i.e. due date for submission of Action Taken Report for Internal Audit Period ended March 31 and September 30 shall be July 31 and January 31 respectively.
  
  
• Action Taken Report shall be certified by the empanelled Internal Auditor of the Trading Member, confirming the status of compliance and shall cover at least a period of one month for sample verification.
  
  
• Action Taken Reports shall be submitted through email to iar_sub...@ncdex.com.
  
  
• In case the observations are not closed in the Action Taken Report or Action Taken Report has not been submitted within the due date, prescribed monetary penalty/disciplinary actions shall be initiated in accordance with Exchange Circular No. NCDEX/COMPLIANCE-056/2025 dated October 10, 2025 or such other penalty circulars issued by the Exchange from time to time.

The aforesaid framework shall be applicable for all the internal audit reports received from the half year ended September 30, 2025 and 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 clarification or assistance required in the implementation of this circular, you may contact : Kaushik Jethwa at kau...@secmark.in and 9870210171