Submission of Annual Compliance Audit Report by Broker Dealers

NSE IFSC Limited, vide Circular No. NSEIFSC/REG/2649 dated June 19, 2026, has announced an important update regarding submission of the Annual Compliance Audit Report (ACAR) and Annual Compliance Audit Checklist (ACAC) by Broker Dealers.

Key Details of the Update –
• NSE IFSC has advised Broker Dealers to comply with the IFSCA framework relating to Annual Compliance Audit for Capital Market Intermediaries (CMIs) in IFSC.
• All Broker Dealers registered with NSE IFSC are required to submit the Annual Compliance Audit Report (ACAR) along with the Annual Compliance Audit Checklist (ACAC) for the preceding financial year.
• Part-C of the ACAC, prescribed by NSE IFSC and enclosed as Annexure 3, shall mandatorily form part of the ACAC submitted to both IFSCA and the Exchange.
• The ACAC shall comprise Part-A (general obligations and responsibilities), Part-B (category-specific obligations and responsibilities) and Part-C (Exchange-specific compliance requirements).
• Broker Dealers holding registration as Capital Market Intermediaries are required to conduct an Annual Compliance Audit for FY 2025-26.
• All working papers and records relating to the audit must be retained by the Compliance Auditor and made available for verification by the Exchange whenever required.
• NSE IFSC has clarified that, with implementation of the Annual Compliance Audit framework, the requirement for submission of Internal Audit Reports has been discontinued.
• Compliance Auditors may be members of ICAI, ICSI, ICMAI or persons authorised to conduct audits in a foreign jurisdiction. ICAI/ICSI/ICMAI members must be peer-reviewed members.
• Compliance Auditors must be independent, free from conflicts of interest, and may be appointed for a maximum of three consecutive years, followed by a mandatory cooling-off period of two years before reappointment.
• Applicability: All Broker Dealers registered with NSE IFSC and other Capital Market Intermediaries required to comply with the Annual Compliance Audit framework under the IFSCA (Capital Market Intermediaries) Regulations, 2025.
• Effective Date: June 19, 2026. The Circular is effective immediately and applies to Annual Compliance Audit requirements for FY 2025-26.

Actions if Any –
• Broker Dealers shall conduct the Annual Compliance Audit for FY 2025-26.
• Broker Dealers shall submit the ACAR along with the ACAC to IFSCA by email at cmi-supervision@ifsca.gov.in.
• Broker Dealers shall submit a copy of the ACAR along with the ACAC to NSE IFSC through the ENIT portal within the prescribed timeline.
• Broker Dealers shall ensure that Part-C of the ACAC prescribed by the Exchange is included in the submission.
• Compliance Auditors shall retain audit working papers and supporting records for verification by the Exchange whenever required.

Compliance Deadline –
• September 30, 2026 – Submission of the Annual Compliance Audit Report (ACAR) along with the Annual Compliance Audit Checklist (ACAC) for FY 2025-26 to IFSCA and NSE IFSC.