The National Securities Depository Limited (NSDL) on April 15, 2026, notified regarding the Internal and Concurrent Audit of Depository Operations.
The following has been stated:
• It has reiterated that Participants must conduct half-yearly internal/concurrent audits of depository operations through qualified professionals and submit reports within prescribed timelines (Nov 15/May 15).
• The audit report format has been revised, and audits shall cover all operational areas, including key risk-prone activities like account opening, DIS handling, pledges, KYC updates, and investor grievances. Concurrent audits should be completed on the next working day (or within a week).
• Participants shall ensure auditor cooperation, proper documentation, and compliance with NSDL/SEBI guidelines. A consolidated report is allowed if the same auditor conducts both audits.
• Non-compliant reports will be treated as non-submission, and NSDL may require a change of auditor. Auditor certification (NISM) and periodic rotation of auditors are also recommended.
[Notification no. - NSDL/POLICY/2026/0054]
