Description

NSE Clearing has issued a manual for Professional Clearing Members (PCMs) detailing the step-by-step process for submitting System Audit reports through the NCL Member Portal, including auditor registration and ATR/follow-on audit submissions.

Summary

NSE Clearing has published a detailed manual (Annexure A) for Professional Clearing Members (PCMs) outlining the process for submitting System Audit reports via the NCL Member Portal (https://ims.connect2nsccl.com/NCLMemberPortal/). The manual covers admin login, sub-user creation for system auditors, auditor registration, report submission, and ATR/follow-on audit procedures.

Key Points

  • PCMs must log into the NCL Member Portal using Admin credentials to create sub-user accounts for system auditors
  • A dedicated sub-user with ‘Inspection - System Audit’ service role must be created for the external system auditor
  • System auditors are registered through the ‘New Auditor Appointment’ section under the System Audit navigation menu
  • Upon successful auditor registration, an intimation email is sent to the auditor to proceed with report submission
  • Members must review the auditor’s observation sheet, upload Governing Board approval (file format: Year_Membercode e.g. 20XX-20XX_XXXXX), and provide management comments for non-complied/not-applicable points
  • The consolidated TOR report must be digitally signed using a DSC before final submission to NSE Clearing
  • A confirmation message is displayed upon successful submission

Regulatory Changes

No new regulatory requirements are introduced. This circular provides procedural guidance for complying with the existing system audit framework for Professional Clearing Members through the NCL Member Portal.

Compliance Requirements

  • PCMs must create sub-users on the NCL Member Portal with appropriate service roles (NCL INSPECTION for admin; Inspection - System Audit for the auditor)
  • Members must register their system auditor through the portal before audit report submission
  • Members must review and respond to auditor observations, providing management comments for each non-complied or not-applicable finding
  • The consolidated TOR (Terms of Reference) report must be digitally signed with a DSC and uploaded to the portal
  • Members must check the declaration box confirming the report is digitally signed before final submission

Important Dates

No specific deadlines are mentioned in this circular. PCMs should refer to their individual system audit schedules and any accompanying communication from NSE Clearing for applicable deadlines.

Impact Assessment

This circular has a moderate operational impact on Professional Clearing Members (PCMs) who are required to undergo system audits. It standardises the audit report submission process through a centralised portal, reducing manual/offline submissions. The impact is limited to PCMs and does not affect retail investors, listed companies, or general trading members. Firms that have not yet onboarded to the NCL Member Portal or set up appropriate sub-users will need to do so before their next system audit cycle.

Impact Justification

Operational compliance circular applicable only to Professional Clearing Members; mandates use of a specific portal for system audit report submission but does not introduce new regulatory requirements or affect broader market participants.