SEBI revises audit framework of Market Infrastructure Institutions (MIIs)

CIRCULAR No. SEBI/HO/MRD1/MRD1_DTCS/P/CIR/2022/58, dated 02.05.2022

The SEBI vide Circular dated 07.01.2020, mandated an annual system audit by an independent auditor for Market Infrastructure Institutions (MIIs). The SEBI has revised the existing system audit framework so as to cover the network audit under the ambit of the revised system. Now, MIIs are required to conduct system and network audits. MIIs are also required to submit information w.r.t. exceptional major Non-Compliances (NCs)/ minor NCs observed in System and Network audit as per specified format.

Further, the Systems and Network audit Report including compliance with SEBI circulars/ guidelines and exceptional observation format along with compliance status of previous year observations is required to be placed before the Governing Board of the MII and then the report along with the comments of the Management of the MII shall be communicated to SEBI within a period of one month of completion of the audit.

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