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<h1>New Circular Requires Annual Independent System Audit for Stock Exchanges, Depositories; Supersedes 2008 Directive.</h1> The circular mandates stock exchanges and depositories to conduct an annual system audit by an independent auditor, as per a revised framework. This framework, developed after discussions with stakeholders and recommendations from the Technical Advisory Committee, includes guidelines for the audit process, auditor selection, terms of reference, and reporting. The audit reports and compliance status must be presented to the governing boards and communicated to SEBI, along with a declaration from the MD/CEO on IT system security and integrity. This circular supersedes the previous 2008 directive and is issued under the authority of the Securities and Exchange Board of India Act, 1992.