Description

BSE reminds trading members to close non-compliances reported in internal audit reports and submit Action Taken Reports by January 31, 2026, or face monetary penalties and disciplinary actions.

Summary

BSE has issued a reminder to trading members regarding the submission of Action Taken Reports for non-compliances identified in the Internal Audit Report for the half year ended September 30, 2025. Members must close all non-compliances and submit their compliance status through BEFS by January 31, 2026. Failure to submit or close observations within the deadline will result in monetary penalties and disciplinary actions as prescribed in Exchange notice No. 20251010-20.

Key Points

  • This is a reminder following previous notices dated December 2, 2025 (No. 20251202-5) and December 12, 2025 (No. 20251212-10)
  • Trading members must close non-compliances reported in the Internal Audit Report for H2 2025 (ended September 30, 2025)
  • Status of compliances must be provided through BSE Electronic Filing System (BEFS)
  • Non-compliance will trigger monetary penalties and disciplinary actions
  • Reference notice for penalties: Exchange notice No. 20251010-20 dated October 10, 2025

Regulatory Changes

No new regulatory changes introduced. This is a reminder for existing compliance obligations.

Compliance Requirements

  • Applicable to: All trading members who received Internal Audit Reports with non-compliances
  • Action required: Close all non-compliances identified in the Internal Audit Report for the half year ended September 30, 2025
  • Submission method: Submit Action Taken Report through BEFS (BSE Electronic Filing System)
  • Documentation: Provide complete status of compliance(s) for all reported non-compliances

Important Dates

  • Audit period: Half year ended September 30, 2025
  • Submission deadline: January 31, 2026
  • Previous notices: December 2, 2025 (No. 20251202-5) and December 12, 2025 (No. 20251212-10)
  • Penalty framework reference: October 10, 2025 (No. 20251010-20)

Impact Assessment

Operational Impact: Trading members with open non-compliances must prioritize closing observations and submitting Action Taken Reports to avoid penalties. This requires coordination between compliance, internal audit, and operational teams.

Financial Impact: Members failing to meet the deadline face prescribed monetary penalties as per Exchange notice No. 20251010-20, in addition to potential disciplinary actions.

Compliance Risk: Non-submission or incomplete closure of observations increases regulatory risk and may lead to enhanced scrutiny from the Exchange. Members should review their internal audit findings promptly and ensure all corrective actions are documented and submitted through BEFS before the January 31, 2026 deadline.

Impact Justification

Reminder notice for trading members to submit Action Taken Reports for internal audit non-compliances. Affects member compliance obligations with penalty consequences for non-submission, but is a routine compliance requirement.