NSE’s Compliance department has issued circular NCL/CMPL/73876 (Circular No. 14/2026) dated April 23, 2026, pertaining to the system audit of Professional Clearing Members (PCMs). The circular outlines the audit framework and compliance obligations that PCMs must fulfill with respect to their operational and IT systems.

Key Points

• Circular issued by NSE Compliance department under reference NCL/CMPL/73876
• Applicable to all Professional Clearing Members (PCMs) registered with NSE
• System audit is a mandatory regulatory requirement for PCMs to ensure operational integrity
• Audits cover IT infrastructure, risk management systems, and clearing/settlement processes
• PCMs must engage empanelled auditors as per exchange guidelines

Regulatory Changes

This circular reinforces and/or updates the existing framework for system audits applicable to Professional Clearing Members. PCMs are entities authorized to clear and settle trades on behalf of other trading members, and are subject to periodic system audits to ensure their technology and operational systems meet exchange and regulatory standards.

Compliance Requirements

• All Professional Clearing Members must conduct system audits as prescribed by NSE
• Audits must be carried out by CERT-In empanelled auditors or other auditors approved by the exchange
• Audit reports must be submitted to NSE within the stipulated timelines
• Any deficiencies identified during the audit must be rectified and compliance confirmed to the exchange
• PCMs must maintain documentation and records as required for audit purposes

Important Dates

• Circular Date: April 23, 2026
• Specific audit deadlines and submission timelines are detailed in the full circular (refer to PDF for precise dates)

Impact Assessment

This circular has a moderate operational impact on Professional Clearing Members, who will need to schedule and complete system audits in compliance with NSE requirements. The audit process involves engagement of approved auditors, IT system reviews, and submission of reports to the exchange. Non-compliance may attract regulatory action. The broader market impact is limited as this is directed at a specific category of clearing intermediaries rather than trading members or investors at large.