Description

User manual for BSE members and auditors detailing the procedure for submitting Internal Audit Reports through the BSE Electronic Filing System (BEFS).

Summary

BSE has issued a comprehensive user manual for members to submit their Internal Audit Report (IAR) for the half year ended September 30, 2025, through the BSE Electronic Filing System (BEFS). The manual provides detailed step-by-step instructions for both members and auditors on the auditor selection process, XBRL file submission, management comments, and final report upload.

Key Points

  • Members must submit Internal Audit Reports for the half year ended September 30, 2025 through BEFS
  • System requirements include Microsoft Excel 2007 or above and file compression software (WinZip/WinRAR)
  • Members must first select and appoint auditors through the BEFS platform
  • Two mandatory undertakings must be provided: (1) appointment of audit firm/auditor and (2) declaration of penalty
  • Auditor login credentials are automatically generated after member completes auditor selection
  • Reports are submitted using XBRL format through a standardized Excel utility
  • Members can only modify ‘General Information’ and ‘Annexure II’ sheets for management comments
  • Final submission requires uploading the XBRL sheet, which is converted to PDF and must be printed on member’s letterhead
  • Members can deactivate auditor login and reassign to a new auditor if needed

Regulatory Changes

No new regulatory changes are introduced. This circular provides operational guidance for existing internal audit reporting requirements.

Compliance Requirements

For Members:

  • Login to BEFS using Internet Explorer
  • Navigate to Internal Audit Reporting Module and select Auditor selection
  • Fill ‘IAR Auditor Member Details’ screen and tick both mandatory undertakings
  • Upload undertaking for declaration of penalty
  • Generate login credentials for appointed auditor
  • Review auditor-submitted XBRL reports
  • Download auditor-uploaded XBRL file from BEFS
  • Fill management comments in ‘Annexure II’ sheet only
  • Validate all sheets before uploading
  • Upload completed IAR XBRL sheet to BEFS
  • Download the auto-generated PDF and print on company letterhead
  • Submit final scanned signed copy through BEFS

For Auditors:

  • Receive login credentials via email after member generates them
  • Follow steps 1-19 in the ‘User Manual for Auditors’ (referenced but not included in this circular)
  • Submit XBRL report to member for review

Important Dates

  • Reporting Period: Half year ended September 30, 2025
  • Circular Date: October 24, 2025
  • Specific submission deadline not mentioned in the circular content

Impact Assessment

Operational Impact:

  • All BSE members must comply with the IAR submission process through BEFS
  • Members need to ensure technical readiness (Internet Explorer, Excel 2007+, file compression software)
  • Coordination required between members and appointed auditors for timely submission
  • Members must review auditor findings and provide management comments in Annexure II

Compliance Impact:

  • Mandatory requirement with undertaking for penalty declaration indicating serious consequences for non-compliance
  • Two-stage approval process (auditor submission followed by member review and comments)
  • Detailed audit trail maintained through BEFS system

Market Impact:

  • Low direct market impact as this is an internal compliance process
  • Enhances transparency and audit oversight of member firms
  • Strengthens regulatory supervision of trading members

Impact Justification

Mandatory compliance requirement for all BSE members to submit half-yearly internal audit reports with specific procedural guidelines and deadlines