The National Stock Exchange (NSE) on October 07, 2022, issued a circular regarding the System Audit of Trading Members (TYPE-III), the trading members using algorithm software (Type – III) are required to conduct a system audit for period April 01, 2022, to September 30, 2022, for all NNF trading software across the segments and submit the report to the Exchange as per the mentioned timelines.
The audit period i.e., Half Yearly (April 22-September 22)
o The last date for submission of the Preliminary Audit Report is November 30, 2022.
o The last date for submission of the Action Taken Report (ATR) (If applicable) is February 28, 2023.
o The last date for submission of the Follow-on Audit Report (If applicable) is May 31, 2023.
The link for submission of the System Audit Report will be made available from October 14, 2022. The Submission of the system audit report shall be considered complete only after the trading member submits the report to the Exchange after providing management comments.
The penalty/disciplinary actions will be initiated against the Member for late/non-submission of the System Audit Report, the various penalties/Disciplinary actions have been mentioned in the table.
The following Annexures have been annexed with this circular:
Annexure A – Auditor Selection Norms
Annexure B – Guidelines to submit the System Audit Report
Annexure C – Terms of Reference (TOR)for System Audit Report
Disclaimer – Kindly find the Table and Annexure in the provided Link/Document.
[Circular No. 74/2022]
