The Bombay Stock Exchange (BSE) on October 27, 2026, notified the Submission of the Half-Yearly Internal Audit Report by Clearing Members.
The following has been stated:
• BSE has directed all Clearing Members who undertook clearing activities for at least one trade for other stockbrokers and/or custodial participants during April 1, 2026, to September 30, 2026, to conduct a complete internal audit and submit the report with all prescribed annexures through the IEFS portal by November 30, 2026. Auditors empanelled with any stock exchange are eligible to conduct the audit.
• The report shall include digitally signed certificates, the audit report in Excel and digitally signed PDF formats, sample-verification details, management comments, and the status of previous audit observations. Late submission attracts charges of ₹2,500 per day during the first week and ₹5,000 per day from the second week, with restrictions on new clearing registrations and eventual disablement across segments for continued non-submission; repeat violations attract an additional 50% escalation of the applicable monetary penalty.
• Members shall close reported non-compliances and submit the Action Taken Report by January 31, 2027. Critical issues, including client collateral misuse and net-worth-related observations, may attract immediate enforcement action. Members shall also comply with SEBI’s internal auditor appointment, independence, disclosure and rotation requirements under its circular dated September 26, 2016.
[Notification No. - 20261027-4]
