Regulatory Alerts2025-01-31
Framework for Monitoring and Supervision of System Audit of Stock Brokers through Technology based Measures
SEBI mandates recognized Stock Exchanges to develop web portals for the online monitoring and supervision of Stock Brokers' system audits, requiring geo-location tracking and standardized digital reporting. The circular establishes strict eligibility criteria for empaneling independent auditors, including cooling-off periods and conflict-of-interest safeguards, while enforcing enhanced verification of IT infrastructure and third-party vendor compliance. Stock Exchanges must implement these technology-based measures within six months for the FY 2025-26 audit period and submit half-yearly compliance summaries to SEBI.
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