Description
NSE extends deadlines for submission of Audit Plan and Preliminary Audit Report for stockbrokers using Algorithmic Trading for half-yearly period ending September 30, 2025.
Summary
NSE has extended the timelines for submission of System Audit Reports (TYPE-III) for trading members who use Algorithmic Trading or provide Algorithmic Trading facilities to their clients. This extension applies to the half-yearly audit period from April 2025 to September 2025 and was granted after consultation with SEBI based on representations from market participants.
Key Points
- Extension applies to stockbrokers using Algorithmic Trading or providing such facilities to clients
- Covers system audit for half-yearly period ending September 30, 2025
- Extended timelines apply to all eligible members including Qualified Stock Brokers (QSBs)
- Extension granted in consultation with SEBI following market participant representations
- Original requirements established under circular NSE/INSP/70900 dated October 17, 2025
Regulatory Changes
No new regulatory changes introduced. This circular provides timeline extensions for existing System Audit (TYPE-III) requirements for algorithmic trading members.
Compliance Requirements
Revised Timeline for Half-Yearly Period (April 2025 - September 2025)
Completion of System Auditor Appointment & Submission of Audit Plan:
- New Deadline: December 10, 2025
Preliminary Audit Report:
- New Deadline: December 31, 2025
Action Taken Report (ATR) - If Applicable:
- New Deadline: March 31, 2026
Applicable To
- Trading members using Algorithmic Trading
- Trading members providing Algorithmic Trading facilities to clients
- Qualified Stock Brokers (QSBs) meeting above criteria
Important Dates
| Requirement | Deadline |
|---|---|
| System Auditor Appointment & Audit Plan Submission | December 10, 2025 |
| Preliminary Audit Report Submission | December 31, 2025 |
| Action Taken Report (if applicable) | March 31, 2026 |
Impact Assessment
Operational Impact: Medium - Provides additional time for trading members to complete system audit requirements, reducing immediate compliance pressure.
Market Impact: Low - This is an administrative extension that does not affect trading operations or market structure.
Affected Entities: Trading members and stockbrokers engaged in algorithmic trading activities across all NSE regional offices (Ahmedabad, Chennai, Delhi, Kolkata, Mumbai).
Compliance Relief: The extension demonstrates regulatory flexibility in response to industry feedback while maintaining oversight of algorithmic trading systems.
Contact Information
For clarifications, members may contact NSE regional offices:
- Ahmedabad (ARO): inspectionahm@nse.co.in | 079-49008632
- Chennai (CRO): inspection_cro@nse.co.in | 044-66309915/17
- Delhi (DRO): delhi_inspection@nse.co.in | 011-23459127/38/46
- Kolkata (KRO): inspection_kolkata@nse.co.in | 033-40400412/459
- Mumbai (WRO): compliance_wro@nse.co.in | 022-26598200/61928200
- Central Help Desk: compliance_assistance@nse.co.in
Impact Justification
Procedural extension providing relief to trading members using algorithmic trading; affects compliance timelines but does not change substantive requirements