The Bombay Stock Exchange (BSE) on October 13, 2023, issued a notification regarding the Submission of Half Yearly Internal Audit Report by Clearing Members with reference to Notice no. 20230921-16 dated September 21, 2023.
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 ended September 30, 2023 that is November 30, 2023.
Clearing Members are required to upload the Internal Audit Report online through Electronic Filing system (IEFS). The path for submission of Annual return is as below:
https://iefs.bseindia.in >> Internal Audit Report
The following advised must be noted by the Internal Auditors:
• The Internal Audit Certificate (Annexure I) should be digitally signed – Annexure I
• In cases where samples have been prescribed, auditors are required to procure the data from the clearing members. Auditors are advised to refer Annexure III carefully before initiating the audit. The samples for parameters/ criteria shall be as per the “Guidelines on sample selection” prescribed in Annexure III and the data required for the same may be sourced from the member.
• For each “Not complied” observation, wherever applicable, the auditor shall mandatorily provide the “no. of instances verified” and “Amount/value involved where non-compliance is observed” while submitting the Report. Further, for each “Not Applicable” Points, appropriate justifying remarks are mandatory to be provided.
• Internal auditors are required to give the details of the sample verified (sample date, shortlisted sample etc.) wherever applicable. The formats for the same are given in Annexure IV.
• For the verification of the area “Bank Guarantee (BG) created Out of Client Funds”, the Auditors are required to verify for the period between May 1, 2023 to September 30, 2023 whether all the BGs comply with SEBI circular dated April 25, 2023, and give the details of the BGs verified in the format as given in Annexure IV.
[Notice No. 20231013-39]
