The Bombay Stock Exchange (BSE) on May 19, 2023, issued a notification regarding the System Audit of Stockbrokers/Trading Members.
The following has been stated namely: -
• The trading members are required to carry out “System Audit” of their trading facility for the period ending March 31, 2023. The applicability criteria have been stated in Table 1.
• The Timelines for submission of the System Audit Report are inserted in Table 2
• In case of any discrepancy, in the broker type and periodicity of submission of the system audit report displayed in the BEFS Portal the stockbrokers are requested to immediately communicate at bse.msc(at)bseindia.com
• Members may note that the reports are required to be submitted only in electronic form through BEFS (BSE Electronic Filing System).
• Trading members are required to submit corrective action taken report for each non-compliance reported by the auditor as per the prescribed timelines. Further, based on audit findings and related risks it should indicate if a follow-on audit is required to review the status of NCs (non-compliances).
• Submission of System Audit Report with Management comments shall be considered complete only after Member submits the report to the Exchange and receives an acknowledgment email.
• Auditor must provide compliance status for each TOR item, and in case of any TOR item which is not applicable, the auditor is required to provide justification for the non-applicability of said TOR. All artefacts required by the auditor need to be securely stored and on requirement produce at minimal interval.
• Stock brokers are requested to refer to the prescribed documents while submitting the system audit report
• The penalty/disciplinary actions to be initiated against the Member for late/non- submission of the System Audit Report have been stated in Table 3.
[Notification No. 20230519-13]
