The National Securities Depository Limited (NSDL) on October 01, 2026, issued guidelines for the internal audit of Registrar and Transfer Agents (RTAs) and issuers having direct connectivity with NSDL, in accordance with Bye Law 8.5.9. Their operations must be audited by a qualified Chartered Accountant, Company Secretary or Cost and Management Accountant holding a Certificate of Practice, and the audit report must be submitted to NSDL on a half-yearly basis. The circular revises the audit report format and provides updated guidelines on the scope and objectives of the audit.
The audit must cover all facets of RTA/issuer operations, and auditors may expand the scope or add audit points to meet the prescribed objectives. The submission deadlines are 15 November for the audit period April–September and 15 May for October–March. Entities operational for less than three months during an audit period may submit the report along with the next period’s report. The revised format applies to the audit period 1 April 2026 to 30 September 2026. Reports that do not comply with the prescribed guidelines will be treated as non-submission, and NSDL may require a change of auditor if the report quality or audit process is unsatisfactory.
Internal auditors must obtain the applicable NISM Series II A: RTAs (Corporate) certification and, for RTAs processing mutual fund transactions, NISM Series IIB: RTAs (Mutual Fund) certification, or undergo the eligible Continuing Professional Education (CPE) programme for depository operations. Reports must be submitted electronically through the e-PASS platform, and auditor details must be updated in the ‘Auditor Master’ module before submission.
[Circular No. NSDL/CIR/II/49/2026]
