Description
NSE reminds trading members to submit Action Taken Reports for non-compliances identified in internal audit reports for the half year ended September 30, 2025, by January 31, 2026, with monetary penalties for non-compliance.
Summary
NSE has issued a reminder to all trading members to submit Action Taken Reports (ATR) addressing non-compliances reported in their internal audit reports for the half year ended September 30, 2025. The deadline for submission is January 31, 2026, through the Inspection module in the Member Portal. Failure to close observations or submit ATR by the due date will result in monetary penalties and/or disciplinary actions as per Exchange circular NSE/INSP/70746 dated October 10, 2025.
Key Points
- Reminder follows earlier circulars NSE/INSP/71579 (December 1, 2025) and NSE/INSP/71800 (December 12, 2025)
- Trading members must close non-compliances identified in internal audit reports
- Submission must be made through Inspection module in Member Portal in prescribed format
- Non-compliance with submission deadline will trigger monetary penalties and disciplinary actions
- Penalty framework defined in circular NSE/INSP/70746 dated October 10, 2025
Regulatory Changes
No new regulatory changes introduced. This is a reminder circular reinforcing existing internal audit compliance requirements for trading members.
Compliance Requirements
Applicable to: All NSE Trading Members
Actions Required:
- Review non-compliances reported in Internal Audit Report for H1 FY2025-26 (ended September 30, 2025)
- Close all non-compliance observations identified in the audit report
- Submit Action Taken Report through the Inspection module in Member Portal
- Use prescribed format for ATR submission
- Ensure submission on or before January 31, 2026
Consequences of Non-Compliance:
- Monetary penalties as per NSE/INSP/70746 dated October 10, 2025
- Disciplinary actions may be initiated
- Penalties apply if observations are not closed or ATR not submitted within due date
Important Dates
- Audit Period: Half year ended September 30, 2025
- Circular Date: January 16, 2026
- Submission Deadline: January 31, 2026
- Reference Circulars: NSE/INSP/71579 (December 1, 2025), NSE/INSP/71800 (December 12, 2025), NSE/INSP/70746 (October 10, 2025)
Impact Assessment
Operational Impact: Trading members must prioritize completion and submission of Action Taken Reports by month-end. Firms that have not yet addressed internal audit findings need to expedite remediation efforts to avoid penalties.
Financial Impact: Members failing to meet the deadline face monetary penalties per the penalty framework established in October 2025.
Compliance Impact: This is part of NSE’s ongoing inspection and audit oversight framework. Members should ensure their internal processes are robust enough to address audit findings within prescribed timelines to maintain good standing with the Exchange.
Contact Information
For clarifications, members may contact:
- Ahmedabad Regional Office: 079-65278024/55, inspectionahm@nse.co.in
- Chennai Regional Office: 044-66309915/17, inspection_cro@nse.co.in
- Delhi Regional Office: 011-23459146/127/144/147, delhi_inspection@nse.co.in
- Kolkata Regional Office: 033-40400412/59, inspection_kolkata@nse.co.in
- Mumbai Western Regional Office: 022-61928200, compliance_wro@nse.co.in
- Central Help Desk: compliance_assistance@nse.co.in
Impact Justification
Administrative reminder for trading members regarding mandatory internal audit compliance reporting with potential penalties for non-submission. Affects all trading members but is part of routine compliance cycle.