Description

BSE announces an online portal for empanelment of qualified auditors to conduct system audits of trading members.

Summary

BSE has announced the establishment of an online portal for the empanelment of qualified auditors who will conduct system audits of trading members. The circular includes an undertaking-cum-affidavit that auditors must execute on stamp paper, outlining eligibility criteria and compliance requirements.

Key Points

  • Auditors must have valid CISA (ISACA), DISA (ICAI), CISM (ISACA), or CISSP (ISC2) certification
  • Audit firms/LLPs/companies must have at least two partners/directors with valid certifications
  • For Qualified Stockbrokers (QSBs), firms must have at least three certified partners/directors
  • New auditors with less than 3 years experience restricted to Type-II trading members with less than 10,000 UCCs
  • Auditors must maintain independence and avoid conflicts of interest with trading members

Regulatory Changes

Implementation of SEBI Circular No: SEBI/HO/MIRSD/TPD/CIR/2025/10 dated January 31, 2025, which mandates BSE to capture geo-location of auditors during physical visits to trading member premises for supervision and monitoring purposes.

Compliance Requirements

  • Auditors must execute undertaking-cum-affidavit on Rs. 500 stamp paper
  • Mandatory participation in BSE training programs and seminars
  • Immediate reporting of any disciplinary actions by regulatory authorities
  • Maintenance of confidentiality for all information obtained during audits
  • Compliance with all applicable laws, rules, and regulations
  • Verification of all areas in system audit checklist as prescribed by BSE/SEBI

Important Dates

  • SEBI Circular dated: January 31, 2025
  • Effective immediately upon circular release

Impact Assessment

This framework standardizes the auditor empanelment process for system audits of trading members, ensuring qualified and independent auditors conduct compliance assessments. Trading members will need to engage only empaneled auditors for their mandatory system audits, potentially affecting audit costs and scheduling.

Impact Justification

Establishes framework for auditor empanelment which affects trading members' compliance requirements