This is further to SEBI circular no. CIR/MRD/DMS/34/2013 dated November 6, 2013 and Exchange notice no. 20131107-6 dated November 7, 2013 on the Annual System Audit of Stock Brokers / Trading members wherein half yearly system audit has been prescribed for stock brokers who use Algorithmic Trading or provide their clients with the facility of Algorithmic Trading as per SEBI Circular CIR/MRD/16/2013 dated May 21, 2013. The Trading Members are required to note the following: Trading members who have used Algorithmic Trading facility (Type III brokers) to trade for the half year ended September 30, 2021, are required to submit the system audit report for the half year ended September 30, 2021 (format of ToR III is attached). Timeline for submission of system audit reports for the half year ended September 30, 2021 is given below: | Sr No. | Particulars | Due Date for submission to the Exchange | | 1. | Preliminary Audit report | November 30, 2021 | | 2. | Corrective Action Report | February 28, 2022 | | 3. | Follow on Report | May 31, 2022 | Exchange has identified the Type III members based on available data / information and displayed the same to members on the BEFS. In case of any discrepancy, members are requested to immediately contact the officials of the Broker Supervision department (contact details given below). Members may note that the above-mentioned reports are required to be submitted only in electronic form through BEFS (BSE Electronic Filing System) – https://befs.bseindia.com and the module for submission is enabled at following link: http://befs.bseindia.com -> System Audit Report Stock brokers are requested to refer to the following documents while submitting the System Audit Report. Ø Auditor Selection Process – Annexure I Ø Audit Process – Annexure II Ø Auditor User Manual for System Audit Report (SAR) – Annexure III Ø Member User Manual for System Audit Report (SAR) – Annexure IV Ø Terms of Reference (ToR) - III The following penalty/disciplinary actions would be initiated against the Member for late/non- submission of System Audit Report. | Particulars | Action | | Submission within 1 month from the end of due date of submission. | Penalty of Rs. 200/- per day | | Submission after 1 month but within 3 months from the end of the due date for submission. | Penalty of Rs. 500/- per day | | Non-Submission within 3 months from the end of due date for submission. | Disablement of trading facility across segments after giving 2 weeks’ notice. Disablement notice issued to the member shall be shared with all the Exchanges for information. Member will be enabled only after submission of system audit report. | It may be noted that submission of System Audit Report shall be considered complete only after Member submits the report to the Exchange and receives an acknowledgment email. Saved reports/reports submitted by auditor will not be considered as final submission to Exchange. Members are requested to take note of the above and ensure compliance. In case of any queries/clarifications, you may contact us on the below nos. | Purpose | Contact Nos. | Email ID | | SAR Process related | 2272 8435/5785 | bse.reports@bseindia.com | | Technical queries | 30594000 | bsehelp@bseindia.com | | SAR XBRL related issues | 1800233 0445 | bse.auditreport@bseindia.com | For and on behalf of BSE Ltd. Hiteshkumar Desai Kiran Sawant Addtnl. Gen. Manager Assistant Gen. Manager Brokers’ Supervision Brokers’ Supervision |