The circular mandates PCMs to include Annexure 3 in System ...

New SEBI rules: PCMs must report major and minor non-compliances in system audits using Annexure 4. Audit reports, including past compliance, to be reviewed by PCM Governing Board and sent to CCs.

Circulars     SEBI

June 21, 2024

The circular mandates PCMs to include Annexure 3 in System Audits and submit information on major/minor NCs as per Annexure 4. The System Audit report, including compliance with SEBI/CCs guidelines and the status of previous observations, must be presented to the PCM's Governing Board and communicated to CCs within a month of audit completion. CCs are advised to create a uniform penalty structure for timely submission and closure of audit observations. Effective immediately, the first audit is for FY 2023-24. Issued u/s 11(1) of SEBI Act, 1992, the circular aims to protect investors and regulate the securities market. Available on SEBI's website.

View Source