SEBI on June 20, 2024 has issued the framework for System Audit of Professional Clearing Members(PCMs). PCMs are required to conduct System Audit as per the framework and Terms of Reference (TOR).
PCMs are also required to maintain a list of all the relevant SEBI and CCs circulars/ directions/ advices, etc. pertaining to technology and compliance thereof and the same shall be included under the scope of System Audit. PCMs are also required to submit information with regard to exceptional major Non-Compliances (NCs)/ minor NCs observed in the System Audit.
The Systems Audit report including compliance with SEBI/CCs/circulars/guidelines and exceptional observation format along with compliance status of previous year observations shall be placed before the Governing Board of the PCM and then the report along with the comments of the Management of the PCM shall be communicated to CCs within one month of completion of audit.
