The National Stock Exchange (NSE) on October 19, 2023, issued the notification regarding the System Audit of Trading Members (TYPE-III).
The following has been stated namely: -
• Trading members using algorithm software (Type III) are required to conduct system audits for the period April 01, 2023, to September 30, 2023, for all NNF trading software across the segments.
• The timeline for submission of the aforesaid report is: -
1. Preliminary Audit report: November 30, 2023
2. Action Taken Report (ATR) (If applicable): February 28, 2024
3. Follow-on Audit Report (If applicable): May 31, 2024
• The link for submission of the System Audit Report will be made available from October 23, 2023
• For each non-compliance reported by the auditor, trading members are required to submit a corrective action taken report as per the above-mentioned timelines
• Based on audit findings and related risks, the auditor should indicate if a follow-on audit is required to review the status of NCs (Non-Compliances)
• members shall comply with any non-compliance/non-conformities (NCs) pending submissions for system audit reports for the previous audit period by submitting ATR and/or Follow on audit reports through ENIT.
[Notification No. NSE/INSP/58999]
