Annual System Audit of Stock Brokers / Trading Members of National Commodity Derivatives Exchanges

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....dit of Stock Brokers / Trading Members of National Commodity Derivatives Exchanges 1. Pursuant to Section 131 of the Finance Act, 2015 and Central Government notification F.No. 1/9/SM/2015 dated August 28, 2015, all recognized associations under the Forward Contracts (Regulation) Act, 1952 are deemed to be recognized stock exchanges under the Securities Contracts (Regulation) Act, 1956 with eff....

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....s of the National Commodity Derivatives Exchanges. The major provisions / framework of System audit for Brokers / Trading members covered are as under: a) Audit Process b) Auditor selection norms c) Terms of Reference ( TOR) for Type I, Type II, Type III Brokers 4. Based on the representations made by stock exchanges on the aforesaid circular, regarding exemption of s....

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....-17 onwards. For the financial year 2015-16, the Brokers / Trading Members who have commenced their annual system audit, may follow existing annual system audit framework prescribed by exchanges, if any. However, stock brokers/ trading members who are yet to commence annual system audit should carry out their system audit as per the prescribed framework as mentioned in this circular. 7. The Exc....