Description
BSE extends deadlines for system audit report submission for trading members using algorithmic trading facilities, in consultation with SEBI.
Summary
BSE has extended the timeline for submission of System Audit reports (TYPE-III) for trading members who use algorithmic trading or provide algorithmic trading facilities to clients. The extension applies to the half-yearly audit period ending September 30, 2025, and was granted in consultation with SEBI following representations from market participants.
Key Points
- Extension applies to System Audit (TYPE-III) for algorithmic trading members
- References original notice 20251017-29 dated October 17, 2025
- Extension granted after consultation with SEBI based on market participant requests
- Applies to all eligible members including Qualified Stock Brokers (QSBs)
- Covers half-yearly audit period from April 2025 to September 2025
Regulatory Changes
No new regulatory requirements introduced. This circular provides revised timelines for existing compliance obligations under the System Audit framework for algorithmic trading members.
Compliance Requirements
Trading members using algorithmic trading must:
- 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
Important Dates
| Requirement | Original Due Date | Extended Due Date |
|---|---|---|
| Audit Period | Half-Yearly (April 2025 – September 2025) | - |
| System Auditor Appointment & Audit Plan Submission | - | December 10, 2025 |
| Preliminary Audit Report | - | December 31, 2025 |
| Action Taken Report (ATR) (if applicable) | - | March 31, 2026 |
Impact Assessment
Operational Impact: Provides additional time for trading members to complete system audit requirements, reducing compliance pressure during the busy year-end period.
Market Impact: Minimal direct market impact. The extension affects internal compliance processes of algorithmic trading members rather than trading operations.
Affected Entities: All trading members using algorithmic trading systems or providing algorithmic trading facilities to clients, including Qualified Stock Brokers (QSBs).
Impact Justification
Administrative extension of compliance deadlines for algorithmic trading members' system audit submissions. Affects operational timelines but does not introduce new requirements or penalties.