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Home / Stock Broking & Intermediaries / Stock Broker & DP Internal Audit Support
Last updated: 2 October 2026
Stock brokers and depository participants carry a recurring calendar of audits, certificates and exchange submissions. Expertvuw organises the records, compliance calendar and management responses, while the audits and certificates themselves are carried out and signed by independent practising Company Secretaries, Chartered Accountants or Cost Accountants.
Under the SEBI Master Circular for Stock Brokers dated 17 June 2025, a stock broker must have a complete internal audit carried out every half year by an independent Chartered Accountant, Company Secretary or Cost and Management Accountant in practice, and submit the report to the exchanges within two months of the end of the half year. A net worth certificate for the half years ending 30 September and 31 March is due to the exchange within 60 days.
Depository participants have a parallel regime under depository bye-laws: a half-yearly internal audit of depository operations and a concurrent audit of activities such as account opening, conducted by practising CA, CS or CMA, as revised by NSDL in October 2025. Cyber security is covered by SEBI’s Cybersecurity and Cyber Resilience Framework (CSCRF) of 20 August 2024, with audit frequency depending on the entity’s category.
The SEBI (Stock Brokers) Regulations, 2026 add broker-level expectations on risk management and internal controls, a compliance officer who reports non-compliance independently to the exchange, and grievance redressal within 21 calendar days. Expertvuw’s role is preparation and coordination: maintaining the calendar, collating records, tracking auditor observations and helping management close them before the next cycle.
Based on the regulations and circulars referred to on this page. Last updated: 28 September 2026.
Half-yearly, by an independent practising CA, CS or CMA (Master Circular for Stock Brokers, 17 June 2025, para 13.2.1).
Internal audit report filed with the exchanges within two months of the half-year end (Master Circular, para 15.6.5.1).
For half years ending 30 September and 31 March, due to the exchange within 60 days (Master Circular, para 15.8.1.1).
Half-yearly audit of depository operations by a practising CA, CS or CMA (NSDL circular NSDL/POLICY/2025/0139, 10 October 2025).
Under SEBI CSCRF (20 August 2024), by CERT-In empanelled auditors; qualified stock brokers audit half-yearly (CSCRF FAQs).
Brokers inspect at least 50% of APs yearly and report quarterly on ENIT (NSE Circular 56/2024, 28 August 2024).
Exchanges and depositories treat late or incomplete submissions as non-compliance in their own right.
Failure to file net worth certificates or audit reports on time is listed among the violations exchanges act on.
Unresolved internal audit findings tend to reappear in exchange inspections and weaken the entity's compliance record.
Client, fund and securities records spread across systems slow down audit sampling and raise the risk of adverse remarks.
Related services.
SEBI registration and exchange membership for broking entities.
SEBI registration as a DP through NSDL or CDSL.
Appointment of Authorised Persons and exchange approval through the broker.
An information security management system that supports cyber resilience controls.
More in this section: RIA & Research Analyst Compliance Audit · SEBI SCORES Grievance Handling Support
We map the entity's registrations, segments and depository links to build its compliance calendar.
A checklist is issued ahead of each cycle and records are collated in the format the auditor needs.
The audit is conducted and signed by an independent practising professional appointed by the entity.
Observations are logged with owners, management responses and target dates.
The entity files reports and certificates within exchange and depository timelines, with our tracking and reminders.
Closure evidence is compiled so the next audit or exchange inspection can verify corrective action.
Beyond the half-yearly audits, several filings and reviews recur through the year.
The audited balance sheet and profit and loss account go to the exchange within six months of year end (Stock Brokers Regulations, 2026).
The compliance officer monitors adherence and reports non-compliance independently to the exchange (Regulation 17, Stock Brokers Regulations, 2026).
Investor complaints, including those on SCORES, are to be resolved within 21 calendar days.
Quarterly AP and branch inspection reports, or nil declarations, are filed on ENIT within one month of quarter end.
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No. Internal audits and certificates are conducted and signed by independent practising Chartered Accountants, Company Secretaries or Cost and Management Accountants. Expertvuw prepares records, tracks timelines and coordinates the process.
The statutory audit covers the financial statements under company law. The internal audit required by SEBI and the exchanges tests compliance with securities market rules, such as client funds handling, KYC, trading records and grievance redressal, every half year.
Yes. The CSCRF applies to SEBI-regulated entities including stock brokers and DPs, with requirements and audit frequency scaled to the category the entity falls in, which for brokers is based on criteria such as turnover.
It is an ongoing review of specified depository activities, such as account opening, delivery instruction slips and changes to client details, carried out under the depository’s framework alongside the half-yearly internal audit.
The auditor reports the observation with management comments. The entity is expected to correct it and keep evidence of closure, since exchanges and depositories check follow-up during inspections.
ACS – Director, Expertvuw Management Pvt Ltd
Advisory and company secretarial work is handled by Expertvuw’s team. Audits, certifications and representation that the law reserves for Chartered Accountants, advocates or other licensed professionals are provided by independent professionals engaged for your case.