Description
BSE reminds members about the mandatory submission of System Audit Reports (SAR) through the BEFS portal via Cymmetri, including detailed auditor user manual and submission procedures.
Summary
BSE has issued a reminder to stock brokers regarding the mandatory submission of System Audit Reports (SAR) for the period ended September 30, 2025. The circular provides a comprehensive auditor user manual detailing the step-by-step procedure for submitting SAR reports through the BEFS (BSE Electronic Filing System) portal via Cymmetri. The submission process includes mandatory physical premises visits with login/logout tracking, XBRL file uploads, and Algo MIS template completion.
Key Points
- Single login credential provided to each auditor/audit firm covering all assigned members
- Mandatory location enablement and multi-factor authentication required for Cymmetri portal access
- Physical premises visits are mandatory with LOGIN/LOGOUT button clicks for each visit
- Auditors must use Microsoft Excel 2007 or above for report preparation
- XBRL format submission required along with Algo MIS template and XML file upload
- SUBMIT button to be clicked only on the last day of final visit to member premises
- System requirements aligned with SEBI circular SEBI/HO/MIRSD/TPD/CIR/2025/10 dated January 31, 2025
Regulatory Changes
The circular reinforces the mandatory requirements introduced by SEBI circular no. SEBI/HO/MIRSD/TPD/CIR/2025/10 dated January 31, 2025, which mandates:
- Physical inspection/review of infrastructure and applications at member premises
- Mandatory LOGIN/LOGOUT tracking for each auditor visit to member premises
- Enhanced monitoring and tracking of audit activities through the Cymmetri portal
- Strict compliance with visit documentation requirements
Compliance Requirements
For Auditors:
- Access Cymmetri portal using credentials received via email post-empanelment
- Enable location services when logging into Cymmetri (mandatory step)
- Complete multi-factor authentication setup
- Navigate to SAR Empanelment > Auditor Reporting section
- Select audit period and fetch member details
- Verify and confirm member-entered auditor details (modify if necessary)
- Conduct physical premises visits and click LOGIN button upon arrival
- Click LOGOUT button after completing each visit
- Repeat LOGIN/LOGOUT for every subsequent visit (strictly mandatory)
- Click SUBMIT button only on the last day of final visit
- Download and complete Algo MIS template
- Upload XBRL file and corresponding XML file for report submission
- Submit final audit report through SAR Empanelment > Auditor Submission XBRL section
For Members:
- Ensure auditors have been properly appointed and details entered in the system
- Facilitate physical premises visits by appointed auditors
- Cooperate with auditor’s LOGIN/LOGOUT documentation requirements
Important Dates
- Audit Period End Date: September 30, 2025
- Submission Deadline: Not explicitly mentioned but implied to be urgent given the “Reminder” nature of the circular
- Reference SEBI Circular Date: January 31, 2025 (SEBI/HO/MIRSD/TPD/CIR/2025/10)
Impact Assessment
Regulatory Impact:
- High compliance burden on auditors to maintain detailed visit logs and location tracking
- Enhanced regulatory oversight and audit trail for system audit activities
- Strengthened accountability through mandatory physical premises verification
Operational Impact:
- Auditors must plan multiple premises visits with proper LOGIN/LOGOUT documentation
- Technical requirements include Excel 2007+, location services enablement, and multi-factor authentication
- Workflow involves multiple stages: premises visits, XBRL preparation, Algo MIS completion, and XML file generation
Market Impact:
- Ensures all stock brokers maintain compliance with system audit requirements
- Strengthens investor protection through rigorous audit processes
- Non-compliance may lead to regulatory penalties or restrictions on member operations
Technology Impact:
- Mandatory use of Cymmetri portal with location tracking and MFA
- XBRL-based reporting improves data standardization and regulatory analysis
- Integration of visit tracking with audit submission creates comprehensive audit trail
Impact Justification
Mandatory regulatory requirement for all stock brokers to submit system audit reports; non-compliance may result in regulatory action. Critical deadline reminder for September 30, 2025 audit period.