Description
BSE extends deadlines for submission of System Audit Plan and Preliminary Audit Report for trading members using algorithmic trading facilities for the half-yearly period ending September 2025.
Summary
BSE has extended the timelines for submission of System Audit reports for Trading Members (TYPE-III) who use algorithmic trading or provide algorithmic trading facilities to clients. The extension applies to the half-yearly audit period from April 2025 to September 2025, following representations from market participants and consultation with SEBI.
Key Points
- Extension granted for System Audit report submission for algorithmic trading members
- Applies to half-yearly period ending September 30, 2025
- Extension covers Audit Plan, Preliminary Audit Report, and Action Taken Report
- Decision made in consultation with SEBI based on market participant feedback
- Applies to all eligible members including Qualified Stock Brokers (QSBs)
- Reference to original notice 20251017-29 dated October 17, 2025
Regulatory Changes
No new regulatory requirements introduced. This circular modifies the submission timelines previously specified in Exchange notice no. 20251017-29 dated October 17, 2025 regarding System Audit of Trading Members (TYPE-III).
Compliance Requirements
Applicable to: Stockbrokers who use Algorithmic Trading or provide Algorithmic Trading facilities to their clients
Requirements:
- Complete System Auditor Appointment and submit Audit Plan by December 10, 2025
- Submit Preliminary Audit Report by December 31, 2025
- Submit Action Taken Report (ATR), if applicable, by March 31, 2026
Audit Period: Half-yearly period from April 2025 to September 2025
Important Dates
| Deliverable | Original Timeline | Extended Timeline |
|---|---|---|
| System Auditor Appointment & Audit Plan Submission | Not specified | December 10, 2025 |
| Preliminary Audit Report | Not specified | December 31, 2025 |
| Action Taken Report (ATR) - if applicable | Not specified | March 31, 2026 |
Audit Period: April 2025 - September 2025
Impact Assessment
Operational Impact: The extension provides additional time for trading members to complete their system audits, reducing compliance pressure during the year-end period. This administrative relief allows members adequate time for thorough audit execution.
Market Impact: Limited direct market impact. The extension affects internal compliance processes of algorithmic trading members but does not alter trading operations or market structure.
Member Impact: Positive for affected trading members as it provides extended timelines for audit-related submissions. Members must still ensure timely completion to meet the revised deadlines. QSBs and other eligible members benefit equally from this extension.
Impact Justification
Administrative extension affecting trading members using algorithmic trading. Provides operational relief but requires timely compliance with revised deadlines.