NSE has issued a circular requiring clearing members (CMs) and Professional Clearing Members (PCMs) to submit their half-yearly internal audit report for the period October 2025 to March 2026 via the NCL Member Portal (https://ims.connect2nsccl.com/NCLMemberPortal/). The circular provides a detailed step-by-step manual covering sub-user creation, internal auditor registration, auditor login creation, conflict of interest submission, and report submission.

Key Points

• Clearing members must submit internal audit reports covering CM, FO, CD, and COM segments for the half year ended March 31, 2026
• Submission is to be done through the NCL Member Portal using a designated sub-user with the NCL INSPECTION role
• Internal auditors must be registered afresh for each audit cycle, even if they are existing auditors
• Upon registration, the auditor receives login credentials via email and must change the password on first login
• Members must submit Annexure I, II, and V as part of the audit report
• A conflict of interest declaration must be obtained and submitted by the member
• The ‘Edit’ facility for auditor segment details is available only if the auditor has not yet submitted the report
• All auditor registration fields are mandatory except ‘Expiry Date of COP’

Regulatory Changes

No new regulatory changes introduced. This circular reiterates the existing framework for periodic internal audit report submission for the half year ended March 31, 2026.

Compliance Requirements

• Clearing Members / PCMs: Must create a sub-user with the NCL INSPECTION role and register their internal auditor on the NCL Member Portal for this audit cycle
• Internal Auditors: Must log in with credentials received via email, change password on first login, and submit Annexure I, II, and V for CM, FO, CD, and COM segments
• Conflict of Interest: Members must obtain and submit a conflict of interest declaration before or alongside audit report submission
• Accurate auditor email ID is mandatory to ensure credentials are delivered correctly

Important Dates

• Audit Period: October 2025 to March 2026 (half year ended March 31, 2026)
• Circular Date: April 13, 2026
• Submission deadline not explicitly stated in the extracted content; members should refer to the full circular for the due date

Impact Assessment

This circular has a moderate operational impact on clearing members and their appointed internal auditors. Firms acting as clearing members must ensure timely registration of auditors and completion of the multi-step portal-based submission process. Non-compliance could attract regulatory scrutiny from NSE/NSCCL. There is no direct impact on trading, market prices, or listed securities.