In recent Circulars rolled out by the National Stock Exchange (“NSE”) and Bombay Stock Exchange (“BSE”), Clearing Members (CMs) are mandated to carry out Internal Audit and submit the Internal Audit Report (“IAR”) to NSE Clearing Ltd. (“NCL”) and Indian Clearing Corporation Ltd. (“ICCL”), for the half year ended March 31, 2024
Please note that separate circular is expected to be published for the process for submission of IAR for the half year ended March 31, 2024 including format of Internal Audit Certificate, Format of Internal Audit Report, Guidelines on sample selection etc. shall be communicated separately through circulars.
The Circulars reiterate the penalties/disciplinary actions for late/non-submission of the IAR, as follows:
1. Charge of Rs. 2,500/- per day will apply for the first week after the due date.
2. From the second week onward after the due date, a charge of Rs. 5,000/- per day will be levied.
3. Additionally, penalty for repeated violation has also been provided.
Please click on the link below to have a detailed read of the circular.
Source: National Stock Exchange and Bombay Stock Exchange
