The National Commodity & Derivatives Exchange Limited (NCDEX) on April 29, 2026, notified regarding the System Audit of Trading Members.
The following has been stated:
• As per the latest circulars issued by the Securities and Exchange Board of India and NCDEX, trading members are required to conduct a System Audit of their software systems for the period ending March 31, 2026, through empaneled auditors and submit reports via the NOSS portal within prescribed timelines. Depending on broker category and infrastructure, audits may be half-yearly, annual, or biennial, with the preliminary report due by June 30, 2026, and the Action Taken Report (ATR) by September 30, 2026.
• The framework mandates strict compliance with audit procedures, including auditor empanelment, submission of audit plans, geo-tagged physical visits, maintenance of records for 3 years, and detailed reporting of systems reviewed.
• Special governance approvals are required for QSBs and other members before submission.
• Additionally, compliance with Algo systems (38 checks) must be reported, and non-compliant Algo IDs cannot be used for trading before rectification, failing which penalties apply.
[Notification no. - NCDEX/Member Inspection-011/2026]
