It has been decided to devise the framework for system audit of Professional Clearing Members (PCMs).
The Systems Audit report including compliance with SEBI/CCs circulars/guidelines and exceptional observation format along with compliance status of previous year observations shall be placed before the Governing Board of the PCM and then the report along with the comments of the Management of the PCM shall be communicated to CCs within one month of completion of audit.
All CCs are jointly advised to devise the appropriate uniform penalty structure for PCMs to ensure that system audit reports are submitted to them within defined timelines as well as audit observations are closed within defined timelines.
The provisions of the Circular shall come into force with immediate effect. The first audit shall be conducted for FY 2023-24.
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