The National Stock Exchange (NSE) on September 18, 2023, issued a circular regarding the Submission of Half Yearly Internal Audit Report by Clearing Members.
This is to inform that all Clearing Members undertaking clearing activities, for at least one trade during the period from April 01, 2023, till September 30, 2023, for other stock-brokers and/or for custodian participants code (their direct trading clients or otherwise) are required to carry out Internal Audit and submit the report to NSE Clearing Ltd. (NCL)
It is to be noted that the due date to submit the Internal Audit Report is within two months from the end of the half year i.e., for the half year ended September 30, 2023, the due date is November 30, 2023.
The penalties/disciplinary actions for late/non-submission of the Internal Audit Report shall be as below: -
Details of Violation
Failure to furnish Internal Audit report to Clearing Corporation for half year ending 30th September within the due date
Penalty/disciplinary actions
• For 1st week after the due date, Charges of Rs. 2,500/- per day
• Charges of Rs. 5,000/- per day from the second week after the due date
• In case of non-submission within three weeks from the due date of submission, New TM/CP registration for clearing is to be prohibited and notice of 7 days for disablement of the clearing facility till submission of data/report. The disablement notice issued to the member shall be shared with all the CCs for information.
• In case of non-submission within four weeks from the due date of submission, members shall be disabled in all segments till submission of data/report.
Penalty for Repeat Violation
In case of a repeat instance by the Member, levy of applicable monetary penalty along with an escalation of 50%.
In case of non-submission within three weeks from the due date of submission, New TM/CP registration for clearing is to be prohibited and notice of 7 days for disablement of clearing facility till submission of data/report.
The disablement notice issued to the member shall be shared with all the CCs for information. In case of non-submission within four weeks from the due date of submission, Member shall be disabled in all segments till submission of data/report.
[Circular Ref. No: 36/2023]
