NSE comes out with framework for appointing forensic auditors

Mumbai (Maharashtra) [India], April 21 : The National Stock Exchange of India has come out with a framework to appoint forensic auditors for assignments relating to the auditing of trading members.

The scope of the forensic audit varies from case to case but that is largely required to assess the status of assets and liabilities of the trading member and ascertain its positions vis-a-vis funds as regards to details of client payables, client receivables and funds available with the broker and securities, according to the statement from NSE.

According to the statement, the exchange shall define the scope of the audit, timelines for completion, and invite quotations from the auditors who are empanelled with SEBI to conduct the forensic audit. The list of auditors shall be disseminated on the Exchange website.

Secondly, the auditors shall submit their quotations to the Exchange within five workings days from the date of the communication by the Exchange to the e-mail, which is id-forensicaudit@nse.co.in.

Thirdly, upon the receipt of the quotations, the Exchange shall shortlist three auditors who have submitted lowest quotes. Thereafter, the lowest of these three quotes, shall be then circulated to the other two auditors who have submitted the quotation, giving them an opportunity to revise the bid, if any, and submit the revised quotation, according to the statement.

Fourthly, post-completion of this exercise, the forensic auditor with 'Lowest Commercial' or 'L1' shall be appointed, as per the the statement from NSE, released on Friday.