Internal Audit for stock brokers/trading members/clearing members
Summary
This circular mandates that stock brokers, trading members, and clearing members conduct complete internal audits on a half-yearly basis. The audits must be performed by independent chartered accountants, company secretaries, or cost and management accountants in practice. Stock Exchanges are required to amend their bye-laws, notify members, and report implementation status to SEBI.
Text
stock brokers/trading members/clearing members shall carry out complete internal audit on a half yearly basis by chartered accountants, company secretaries or cost and management accountants who are in practice and who do not have any conflict of interest.
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately
bring the provisions of this circular to the notice of the member brokers /clearing members of the Exchange and also to disseminate the same on the website
communicate to SEBI, the status of the implementation of the provisions of this circular in the Monthly Development Report
Source: SecMarx — Internal Audit for stock brokers/trading members/clearing members. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.