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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSE - Reporting of critical non-compliances observed in the internal audit of Trading Members

22-Jul-2025 | NSE/INSP/69247

NSE has issued a circular regarding the Reporting of critical non-compliances observed in the internal audit of Trading Members effective from 22nd July, 2025. By virtue of this circular, it has been informed that the internal auditor of the trading members shall report the critical non-compliances to the Exchange within 2 days from the date of finding of such non-compliance without waiting till the submission of the Internal Audit Report for reporting these non-compliances, by way of an email to the following email id - DL-INTERNALAUDITOR@nse.co.in. Critical non-compliances for the purpose of reporting in terms of this Circular are as under - 1. Shortfall of client funds /securities /commodities wherein such shortfall is not recouped 2. Shortfall of networth /Incorrect reporting of net worth to the Exchange resulting in shortfall (below the minimum prescribed net worth) / Not meeting the minimum Net-worth criteria for providing Margin Trading Facility wherein such shortfall is not recouped 3. Offering fixed/assured/periodic returns to clients / mobilizing deposits from the Investor Trading Members are advised to bring the contents of this circular to the notice of their Internal Auditors and ensure compliance to the above requirement.

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