The National Stock Exchange of India Limited (NSE) has directed all trading members to conduct a complete internal audit for the half-year ended 30 September 2026 and submit the report electronically through the Inspection module in the Member Portal. The report must be certified by an NSE-empanelled auditor and submitted by 30 November 2026. Late or non-submission will attract penalties or disciplinary action under NSE Circular No. NSE/INSP/73792 dated 17 April 2026.
Internal auditors must report critical non-compliances, including unrecouped shortfalls in client funds/net worth, offering fixed/assured/periodic returns to clients, and mobilisation of deposits from investors, to [email protected] within two days of identifying the non-compliance. Trading members must close all non-compliances identified in the audit by 31 January 2027 and submit the Action Taken Report within the prescribed timeline. Immediate action may be taken against critical non-compliances without waiting for the Action Taken Report. The circular also reiterates that an audit firm completing two consecutive five-year terms cannot be reappointed for the same trading member for five years after completion of those terms.
Auditors must follow the revised sampling criteria in Annexures III and IIIA, document the number of instances verified and the amount/value involved for applicable non-compliances, provide remarks for points marked “Not Applicable,” and submit the required valid certification. Where applicable, Annexure VII must be submitted for verification of corrective actions arising from SEBI inspections. The audit is considered complete only after the trading member submits the report to NSE and receives an acknowledgement email; reports merely saved or submitted by the auditor are insufficient.
[Circular Ref. No. 47/2026]
