New secretarial audit rules likely from April 1

Our Bureau Updated - March 19, 2014 at 09:56 PM.

Norms should be on par with internal financial audit: company secretaries body

The Institute of Company Secretaries of India has recommended that the norms for proposed secretarial audit should be on par with that of internal financial audit. The Government needs to approve the recommendation as a rule under the new company law.

R Sridharan, President of ICSI, said here on Wednesday that the secretarial audit would take into account all the legal compliances a company was required to fulfil according to the new law. The rules under the Companies Act 2013 were being framed. These rules would take effect from the financial year 2014-15. “We hope the rules for the secretarial audit would come into effect from April 1,” he said.

Meanwhile, ICSI has also recommended that students who would clear its executive programme should undergo training for two year instead of current requirement of training for 15 months.

Sridharan said that the institute has decided to introduce computer-based examination for foundation programme from June. ICSI switched over to online registration system for admissions to its foundation, executive and professional programmes from January.

“To familiarise students with computer-based examinations, mock test, FAQs, examination time schedule, procedure to enrol for examination and instruction to examinees would shortly be hosted on the Institute’s Web site,” he added.

Currently, ICSI has 35,000 members and 4 lakh students.

The new company law has identified a company secretary as one of the “key management personnel” responsible of corporate governance. The new Act has also envisaged several other roles such as of a valuer, advisor, arbitrator and securities manager.

The institute is also creating facilities for peer reviews among the practicing secretaries and organising skill enhancement courses for its members.

Published on March 19, 2014 16:26