SEBI's New Audit Guidelines for Professional Clearing Members
NEW DELHI: In a move to bolster the integrity of financial markets, the Securities and Exchange Board of India (SEBI) has unveiled a comprehensive framework for the system audit of professional clearing members (PCMs). Effective immediately, this framework mandates the submission of detailed audit reports highlighting both major and minor non-compliances. The initial audit is set for the fiscal year 2024, reflecting SEBI's commitment to enhancing transparency and accountability in the financial sector.
Clearing corporations have been instructed to collaboratively develop a standardized penalty structure for PCMs, ensuring timely report submissions and the prompt resolution of audit findings. This initiative underscores SEBI's proactive approach in maintaining robust oversight and fostering a culture of compliance among market participants.