National Stock Exchange (NSE) has mandated its trading members (stock brokers) and clearing members to appoint an internal auditor and submit report on half yearly basis.
The first half year period would start from October 1, 2008.
The purpose of audit should be to ensure that the books of account, records and documents are being maintained in the manner required under Securities Exchange Board of India Act, 1992 and related rules, said the market regulator.
Non-submission of internal audit report as per the guidelines shall be treated as non-compliance and appropriate action may be initiated against the concerned members, said NSE.
