The National Commodity & Derivatives Exchange Limited, on December 03, 2025, issued a notification regarding the Submission of the Action Taken Report for non-compliance(s) reported in the Internal Audit Reports.
Trading members are required to submit half-yearly internal audit reports to the Exchange as per SEBI Circular dated September 26, 2016. Reports for periods ending March 31 and September 30 must be submitted by May 31 and November 30, respectively. Non-compliances reported in these audits attract monetary penalties or disciplinary actions, and members must close them in line with SEBI Master Circular clauses 13.2.4 and 13.2.5.
To streamline compliance and ensure the timely closure of audit observations, SEBI and the Exchanges have jointly introduced a new framework for filing Action Taken Reports (ATR):
1. Timeline for Closure: All non-compliances must be closed within 2 months from the due date of the internal audit submission.
• ATR due dates: July 31 (for audits ending March 31) and January 31 (for audits ending September 30).
2. Certification Requirement: ATR must be certified by the empanelled Internal Auditor, confirming compliance status. Verification should cover a minimum of one month's sample.
3. Mode of Submission: ATRs must be emailed to [email protected].
4. Penalties for Delay/Non-Closure: If ATR is not submitted on time or observations remain unresolved, monetary and disciplinary actions will be taken as per Exchange Circular or future penalty circulars.
This framework applies to internal audit reports from the half-year ending September 30, 2025, onward. Members must inform their internal auditors and ensure strict compliance.
[Circular No: NCDEX/COMPLIANCE-067/2025]
