Internal Audit of Trading Members/ Clearing Members


The National Stock Exchange of India (NSE) has directed all Trading Members/ Clearing Members to carry-out a complete Internal Audit for the half year ended on 31st March, 2023. This circular was notified on 6th April, 2023.

The Members are required to submit the report electronically through the Inspection module in the Member Portal.

The Audit shall be conducted only by independent qualified Chartered Accountant or Company Secretary or Cost & Management Accountant who is in practice and does not have any interest in or relation with the Member other than the Internal Audit assignment.

Moreover, the due date to submit the Internal Audit Report is within two months from the end
of half year i.e., for the half year ended on 31st March, 2023, the due date is May 31, 2023.

Late/non-submission of the Internal Audit Report and non-compliances observed in the Internal Audit Report, shall be subject to penalties/disciplinary actions.

Furthermore, members are directed to submit an undertaking along with the Internal Audit Report. This undertaking must be digitally signed by the proprietor or partner or the designated director of the company for the current audit period. Internal Auditor shall not be able to submit the Internal Audit Report unless the said undertaking is submitted by member.

The circular also lists out certain guidelines for Internal Auditors.

It also provides the following formats:

  • Internal Audit Certificate – Annexure I.
  • Format of Internal Audit Report – Annexure II. (Excel File-“IARNSEMAR23”)
  • Guidelines on sample selection & other points to be noted – Annexure III.
  • List of indicative processes & reference of Exchange/SEBI circulars – Annexure IV.
  • Detailed manual for submission of Internal Audit Report & Troubleshooters – Annexure V.

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