Description

NSE introduces new framework for empanelling auditors to conduct system audits of trading members, effective from audit period ending September 30, 2025.

Summary

NSE has introduced a comprehensive framework for empanelling auditors who conduct system audits of trading members, in compliance with SEBI Circular SEBI/HO/MIRSD/TPD/CIR/2025/10 dated January 31, 2025. The Exchange will only accept system audit reports certified by empanelled auditors from the audit period ending September 30, 2025 onwards.

Key Points

  • NSE will only accept system audit reports from empanelled auditors starting September 30, 2025
  • Auditors must be empanelled through NSE’s online portal
  • Different eligibility criteria based on trading member categories and client base
  • Auditors require specific certifications (CISA/DISA/CISM/CISSP)
  • Partnership firms/LLP/companies must have at least two partners/directors
  • Experience-based restrictions on number of audits that can be conducted

Regulatory Changes

  • Implementation of SEBI’s technology-based monitoring framework for system audits
  • Mandatory empanelment process for all system auditors
  • Structured eligibility criteria based on auditor experience and trading member classification
  • Online application and undertaking submission requirements

Compliance Requirements

  • Auditors: Must apply for empanelment through online portal at https://inspection.nseindia.com/empanelment_auditor/auditor/auditorRegistration/
  • Auditors: Must submit Undertaking-cum-Affidavit in prescribed format (Annexure 2)
  • Auditors: Must possess valid CISA/DISA/CISM/CISSP certification
  • Trading Members: Must ensure their system auditors are empanelled before audit period ending September 30, 2025
  • Partnership Firms/LLP/Companies: Must maintain minimum two partners/directors

Important Dates

  • September 30, 2025: Effective date - only empanelled auditor reports will be accepted from this audit period onwards
  • Immediate: Auditors can begin online empanelment application process

Impact Assessment

  • High Impact on Trading Members: Must verify their system auditors are empanelled or find new empanelled auditors
  • High Impact on System Auditors: Must complete empanelment process to continue conducting audits
  • Operational Changes: New online portal system for auditor management
  • Quality Enhancement: Stricter qualification and experience requirements may improve audit quality
  • Market Compliance: Strengthened system audit mechanism across all NSE trading members

Impact Justification

Mandatory new framework affecting all trading members and their system auditors with specific deadlines