BSE asks brokers to submit internal audit report by June 30 or face penalty


Leading stock exchange BSE has directed brokers to submit internal audit report for the half year ended March 2016, by June 30 in electronic form.

The non-submission of the report within the cut-off will attract penalty.

All brokers and clearing members are required to carry out complete internal audit on a half-yearly basis by independent chartered accountants or company secretaries who do not have any conflict of interest.

“The current half-yearly internal audit is required to be carried out for the period from October 1, 2015 to March 31, 2016 and the internal audit report is required to be submitted on or before June 30, 2016 only in electronic form through BEFS (BSE Electronic Filing System),” the exchange said in a circular.

The documents will not be accepted in physical form.

The exchange said non-submission or delay in submitting the report by June 30 will be treated as non-compliance.

The brokers complying with the direction between July 1 to September 30 will have to pay Rs 100 a day. Between October 1 and December 31, it stands at Rs 1,000 per day.

“In case internal audit report is not submitted by December 31, 2016, the trading terminals shall be deactivated from January 2, 2017 onwards,” it warned.