Description
BSE/ICCL directs all Professional Clearing Members to complete System Audit Reports by May 31, 2026 and submit to ICCL by June 30, 2026, in compliance with SEBI circular dated June 20, 2024.
Summary
The Indian Clearing Corporation Limited (ICCL) has issued a notice requiring all Professional Clearing Members (PCMs) who conducted clearing activities during FY 2025-26 to complete and submit a System Audit Report. This is pursuant to SEBI Circular No. SEBI/HO/MRD/TPD/P/CIR/2024/84 dated June 20, 2024 on System Audit of PCMs.
Key Points
- All PCMs who conducted clearing activities during the audit period must submit a System Audit Report for FY 2025-26
- The audit report must be completed by May 31, 2026
- Submission to ICCL must be made by June 30, 2026
- Reports must be approved by the Governing Board (or equivalent governance structure) before submission
- Submissions are to be sent to iccl.systemaudit@icclindia.com
- Subject line format: “System Audit Report- Name of the Member (Member Code) – FY 2025-26”
Regulatory Changes
No new regulatory changes introduced. This notice operationalizes the existing SEBI Circular No. SEBI/HO/MRD/TPD/P/CIR/2024/84 dated June 20, 2024, which established the System Audit framework for Professional Clearing Members.
Compliance Requirements
- PCMs must conduct a System Audit covering their clearing activities for FY 2025-26
- The audit report requires approval from the Governing Board or equivalent governance body prior to submission
- Reports must be emailed to iccl.systemaudit@icclindia.com with the prescribed subject line
- Non-compliance actions are detailed in the attached Annexure 2
Important Dates
| Milestone | Deadline |
|---|---|
| System Audit Report completion | May 31, 2026 |
| Submission of Audit Report to ICCL | June 30, 2026 |
Impact Assessment
This circular has a targeted operational impact on Professional Clearing Members (PCMs) only. PCMs must allocate resources for conducting and reviewing the system audit within the prescribed timeline. Non-compliant PCMs face regulatory action as outlined in Annexure 2. There is no direct impact on trading activity, listed securities, or retail investors.
Impact Justification
Routine annual compliance requirement for Professional Clearing Members; impacts only PCMs that conducted clearing activities during FY 2025-26, not broader market participants or listed securities.