National Stock Exchange comes out with framework to appoint auditors

The National Stock Exchange (NSE) on Thursday put in place the framework for the selection and appointment of auditors for assignments relating to forensic audit of trading members.

The decision has been taken to provide equal opportunity to all competent Sebi-empanelled forensic auditors, the exchange said in a statement.

At present, the Securities and Exchange Board of India (Sebi) has empanelled CA firms or companies to take up assignments relating to forensic audits.

The exchange conducts the forensic audit of the trading members, who are identified, based on serious violations or non-compliances observed during its inspections.

Under the framework, the NSE would define the scope of the audit and timelines for completion, and invite quotations from the auditors who are empanelled with Sebi to conduct the forensic audit.

After this, the auditors would submit their quotations to the exchange within five working days from the date of the communication by the exchange.

Following the receipt of the quotations, the exchange would allow those who have submitted the lowest quotes. Thereafter, the lowest of these three quotes would be then circulated to the other two auditors who have submitted the quotation, allowing them to revise the bid, if any, and submit the revised quotation.

Post completion of this exercise, the forensic auditor with "Lowest Commercial" would be appointed.