Member’s attention is drawn to SEBI circular no. CIR/MRD/DMS/34/2013 dated November 6, 2013 and Exchange notice no. 20131107-6 dated November 7, 2013 on the Annual System Audit of Stock Brokers / Trading members.
Accordingly, trading members are required to carry out system audit of their trading facility for the period ended March 31, 2020, as per the applicability criteria given below:
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Sr No.
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Particulars
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Broker Type
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Terms of Reference (ToR)
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Presence of broker
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Periodicity of submission of report
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1
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IML / IBT / DMA / STWT / SOR users and who may also be Type I brokers.
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II
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TOR II
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Presence in not more than 10 locations and number of terminals are not more than 50.
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Once in two years*
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Presence in more than 10 locations or number of terminals are more than 50.
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Annual
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2
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Algo users and who may also be Type II brokers
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III
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TOR III
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Not Applicable
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Half yearly
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* Annual, if depository participant or is involved in offering any other financial services.
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.
Timelines for submission of System Audit Report is given below:
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Sr. No.
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Particulars
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Due Date for submission to the Exchange
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1.
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System Audit report
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July 31, 2020
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2.
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Corrective Action Report
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October 31, 2020
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3.
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Follow on Report
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January 31, 2021
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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, stockbrokers are requested to immediately contact the officials of the Broker supervision department (contact details given below).
Members may note that the System Audit Report for the period ended March 31, 2020 is to be submitted in electronic form only through BEFS (BSE Electronic Filing System) and the module for submission is now enabled at following link:
https://befs.bseindia.com -> System Audit Report
Stock brokers are requested to refer to the following documents while submitting the system audit report.
Ø Auditor Selection Process – Annexure I
Ø Audit Process – Annexure II
Ø Auditor User Manual for System Audit Report (SAR) – Annexure III
Ø Member User Manual for System Audit Report (SAR) – Annexure IV
Ø Terms of Reference (ToR) -II
Ø Terms of Reference (ToR) -III
The following penalty/disciplinary actions would be initiated against the Member for late/non- submission of System Audit Report.
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Particulars
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Action
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Submission within 1 month from the end of due date of submission.
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Penalty of Rs. 200/- per day
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Submission after 1 month but within 3 months from the end of the due date for submission.
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Penalty of Rs. 500/- per day
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Non-Submission within 3 months from the end of
due date for submission.
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Disablement of trading facility across segments after giving 2 weeks’ notice.
Disablement notice issued to the member shall be shared with all the Exchanges for information.
Member will be enabled only after submission of system audit report.
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Members are requested to take note of the above and ensure compliance.
In case of any queries/clarifications, you may contact us on the below nos.
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Contact Name
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Purpose
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Contact Nos.
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Email ID
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Deepa/Abhishek /Josephine/Prakash
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Process related
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22728214/8743/8598/8895
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bse.reports@bseindia.com
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BSE Helpdesk
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Technical queries
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30594000
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bsehelp@bseindia.com
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Helpdesk
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SAR XBRL related issues
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1800233 0445
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bse.auditreport@bseindia.com
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For and on behalf of BSE Ltd.
Kiran Sawant
Asst. General Manager
Brokers’ Supervision |