Clipped from: https://www.business-standard.com/markets/news/national-stock-exchange-issues-framework-for-appointing-forensic-auditor-123042001318_1.html
The auditors will be required to submit the quotations within five working days
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The National Stock Exchange (NSE) on Thursday issued a framework for the selection of auditors for conducting forensic audits of brokers. Such forensic audits are done particularly in cases of critical violations including misuse of client assets, unauthorised portfolio management services and providing assured returns to the clients.
The stock exchange will define the scope of audit, timelines for completion, and invite quotations from the auditors who are empaneled with the market regulator to conduct the forensic audit, NSE said in a press release.
The auditors will be required to submit the quotations within five working days.
Subsequently, the three lowest bidders will be shortlisted and the details of the lowest quotes will be circulated so as to provide the other two auditors an opportunity to revise their bids. Finally, the forensic auditor with “Lowest Commercial” – “L1” will be appointed.
In 2018, Sebi had issued a framework for early detection of fraud and to prevent diversion of client securities following a spate of defaults by brokers.