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Stock exchanges, MIIs to report compliance defaults to SEBI

New Delhi, May 2 (PTI) Markets regulator Sebi on Monday asked stock exchanges and other market infrastructure institutions (MIIs) to report some of the major non-compliances noticed in the system and network audits.

In a circular on Monday, the Securities and Exchange Board of India (SEBI) directed that the report of system and network audit will be placed before the governing board of the concerned MII. That report along with the comments of the Board of Directors will have to be communicated to SEBI within a month.

SEBI has taken this step after the suggestions received from its Technical Advisory Committee (TAC) and consultation with MIIs.

Keeping in view the rapid technological developments in the securities market and the consequent risks to the credibility and efficiency of the market, SEBI in January 2020 made annual systemic audits mandatory. All stock exchanges, payment corporations and depositories are required to get this test done by a reputed independent auditor.

Under the new guidelines, MIIs are required to conduct system and network audits in accordance with the format and conditions prescribed by SEBI. During this period, if any particular rule is not found to be complied with, it will have to be reported to SEBI.


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