Annual System Audit of Stock Brokers / Trading members



Notice No.: 20180424-33                                                               Notice Date: 24 April 2018

Category Compliance Segment General

Sub.: Annual System Audit of Stock Brokers / Trading members

This is further to SEBI circular no. CIR/MRD/DMS/34/2013 dated November 6, 2013, Exchange notice no. 20180402-14 dated April 2, 2018 on the Annual System Audit of Stock Brokers / Trading members.

Exchange has identified the broker type and periodicity of submission of the system audit report based on available data / information and displayed the same in the BEFS. In case of any discrepancy, stock brokers are requested to immediately contact the officials of the Broker supervision department (contact details given below).

Please note that stock brokers who are using trading software provided by the Exchange (BOLT/BOLT PLUS) and/or software provided by Exchange owned application Service Provider (ASP) shall not be covered in the system audit.
Stock brokers falling under following category (once in two years) will be required to submit the system audit report for the period as displayed in BEFS (BSE Electronic Filing System):

IML / IBT / DMA / STWT / SOR users who are not a depository participant or involved in offering any other financial services and having presence in not more than 10 locations and number of terminals are not more than 50 .
The type III Broker (Brokers who use Algorithmic Trading facility to trade) will be required to submit the system audit report for the period October 1, 2017 to March 31, 2018.

Stock brokers were earlier informed that that the Auditor may perform a maximum of 3 successive audits of the stock broker and that follow-on audits conducted by the auditor shall not be considered in the successive audits. In this regard, it is clarified that the count of such audits will commence from audits conducted for period ended March 31, 2014.

The provision to submit the System audit report and related documents only in electronic form through BEFS (BSE Electronic Filing System) is now enabled at following link: -> System Audit Report -> Preliminary Audit Report.

Stock brokers are requested to refer to the user manual available in the BEFS (System Audit Report module) while submitting the report. Stock brokers are required to upload all documents in PDF FORMAT only.

Following are the file naming conventions for uploading the required files.

Name of Document Naming convention of file Example
Terms Of Reference CLGNO._TOR(TYPE)_MAR18.PDF 1_TORIII_MAR18(Example in case TOR III is applicable)2_TORII_MAR18(Example in case TOR II is applicable)
Executive Summary Report CLGNO._ESR_MAR18.PDF 1_ESR_MAR18
Corrective Action Report CLGNO._CAR_MAR18.PDF 1_CAR_MAR18
Follow on Report CLGNO._FOR_MAR18.PDF 1_FOR_MAR18

Please note that in case of non/late submission of System audit report for period ended March 31, 2018 beyond June 30, 2018, disciplinary action/charges are as follows:

1. Charges of Rs 100/- per day will be levied for the month of July 2018.

2. Further, from August 1, 2018 Exchange will withdraw BOLT /BOLTPLUS/ IML facility for non-submission of System audit report.

In case of any further clarification, the stock brokers may contact the following officials.

 Sr. No. Name of Official Tel No.
1. Ms. Jyoti Thukral 022-22728214
2. Ms. Priya Pillai 022-22728598
Estelle Solution Private Limited ,59 Bentick street First Floor Kolkata 700069



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