SECRETARIAL AUDIT BY COMPANY SECRETARIES IS NOT UP-TO-MARK SAYS SEBI

SECRETARIAL AUDIT BY COMPANY SECRETARIES IS NOT UP-TO-MARK SAYS SEBI

SEBI DISAPPOINTED WITH COMPANY SECRETARIES

One Day FEMA Seminar at Mumbai . For details click the following link

http://rvseckarfema.blogspot.in/2018/05/one-full-day-seminar-on-fema-at-mumbai.html

Capital markets regulator Sebi today said it is "disappointed" with company secretaries for lack of disclosures regarding actions taken by stock exchanges in secretarial audits of companies.

"I was rather disappointed to see that many of the secretarial audit reports did not report on the non-compliances pointed out by the stock exchanges," Sebi chairman Ajay Tyagi said addressing an Institute of Company Secretaries of India event here.

EVALUATION OF SECRETARIAL AUDITS BY NATIONAL STOCK EXCHANGE

Pointing out to an analysis of secretarial audit reports undertaken by the National Stock Exchange recently, he said the shortcomings included not reporting penalties levied by stock exchanges and overlooking compliance and corporate action events like changes in capital schemes.

QUALITY OF SECRETARIAL AUDIT SHOULD BE IMPROVED

Reminding that the company secretaries have been entrusted with the responsibility of secretarial audit in practice, Tyagi said, "I would urge to further step up the quality of the secretarial audit especially for listed companies." 

"Disclosure and reporting has become very important in recent years because of increased emphasis on corporate governance," he said.

Submission of "quality" secretarial audit reports is the need of the hour

Tyagi also elaborated on the regulator's other expectations from the secretarial audits, including submission of "quality" secretarial audit reports.

A company secretary should "keep the dignity of the profession high, he should adopt a substance over form approach focusing on the principles and promptly report non-compliance to demonstrate commitment to both good governance and financial management," he said.

To imbibe a culture of ethics and values

Tyagi added that there is a need to imbibe a culture of ethics and values and look at things beyond compliance to laid down regulations.

"A culture of integrity will have to be developed that permeates all levels of operation. A stronger ethical culture will also strengthen investors' faith in capital markets," Tyagi said.

"If the company secretary is diligent, the quality of corporate governance in India can become at par with the rest of the world," he added.

Courtesy : Business Standard

COMPANY LAW UPDATES Rs.100 PER DAY FINE SHALL BECOME PAYABLE IN RESPECT OF MGT-7, AOC-4, AOC-4 XBRL AND AOC-4 CFS IF FILED BEYOND DUE DATE.

COMPANY LAW UPDATES

Rs.100 PER DAY FINE  SHALL BECOME PAYABLE IN RESPECT OF MGT-7, AOC-4, AOC-4 XBRL AND AOC-4 CFS IF FILED BEYOND DUE DATE.

The Companies (Registration Offices and Fees) Second Amendment Rules 2018 has been notified on 7th May 2018. Accordingly, in case the due date of filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013 expires after 30/06/2018, the additional fee @Rs.100 per day shall become payable in respect of MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS.

 FORMS PERTAINING TO COMPANIES ACT ,1956 WILL ATTRACT RS 100/= PER DAY AFTER 1ST JULY 2018.

In all other cases where the belated annual returns or balance sheet/financial statement which were due to be filed whether under the Companies Act,1956 (23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A) or the Companies Act, 2013 (MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS) additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus @Rs.100 per day w.e.f 1st July 2018 shall become payable. Stakeholders are advised to take note and plan accordingly.