The Securities and Exchange Board of India (Sebi) on Friday asked stock exchanges to ensure their brokers and clearing members conducted a complete internal audit every six months by independent chartered accountants.

The first such audit would be for the period starting October 1, 2008 and ending on March 31, 2009, the market regulator said in a statement, also adding that the status of its implementation must be communicated to it in the monthly development report.

The scope of such audit should cover the existence, scope and efficiency of the internal control system, compliance with the provisions of the Sebi Act, 1992, SCRA 1956, Sebi (Stock Brokers and Sub-Brokers) Regulations, 1992, circulars issued by Sebi, agreements, KYC requirements, byelaws of the exchanges, data security and insurance in respect of the operations of stock brokers/clearing members, Sebi said.