SEBI has mandated vide their circular dated 8th February, 2019 that listed entities shall submit a Secretarial Compliance Report (SCR) for the year ended within 60 days from the end of the year to the stock exchanges. This report shall be prepared by Practising Company Secretaries (PCS) and submitted to the company and the company in turn will submit the same to the SEs within the said period of 60 days as above.
Secretarial Audit under section 204 of the Companies Act, 2013 shall continue in parallel and this applies to all listed entities and their material unlisted subsidiaries.
A look at the format of the SCR shows that the PCS has to go through the documents, records, filings, submissions, website, and certify that the company has complied with all the relevant and applicable SEBI regulations to the company. The PCS has to report on the non compliances, details of action taken against the company, its directors, promoters etc. in much detail. What action has been taken by the company against any qualified remark in the previous report(s). Whether the listed entity has maintained proper records as required under the various regulations.
It is a very dynamic report and requires lot of effort on the part of PCS to compile this report.
The time frame is also very less as the report has to be submitted by the company to the SEs within 60 days from the close of the financial year.
One has also to wonder why the need for a separate report on virtually the same subject from two different regulators. What was required was amendment of the format issued by MCA so that the points captured by SEBI in their draft SCR could have been encapsulated in the SAR itself.
Secretarial Audit under section 204 of the Companies Act, 2013 shall continue in parallel and this applies to all listed entities and their material unlisted subsidiaries.
A look at the format of the SCR shows that the PCS has to go through the documents, records, filings, submissions, website, and certify that the company has complied with all the relevant and applicable SEBI regulations to the company. The PCS has to report on the non compliances, details of action taken against the company, its directors, promoters etc. in much detail. What action has been taken by the company against any qualified remark in the previous report(s). Whether the listed entity has maintained proper records as required under the various regulations.
It is a very dynamic report and requires lot of effort on the part of PCS to compile this report.
The time frame is also very less as the report has to be submitted by the company to the SEs within 60 days from the close of the financial year.
One has also to wonder why the need for a separate report on virtually the same subject from two different regulators. What was required was amendment of the format issued by MCA so that the points captured by SEBI in their draft SCR could have been encapsulated in the SAR itself.
.png)
No comments:
Post a Comment