Hyderabad : The Institute of Company Secretaries of India (ICSI) is to open a ICSI Centre for Excellence at Hyderabad declared CS R. Sridharan, National President, The ICSI addressing media here at Hyderabad today. The 50,000 Sq.ft. first of its kind centre in South India with an investment of Rs.20 crores will come up at Uppal, Hyderabad and will be ready in two years time. The second such centre of ICSI in India after Mumbai, the Hyderabad Centre will cater to entire southern region of India and will offer opportunity for students from entire South India to pursue CS training with hostel facility. Addressing media in city today, CS R. Sridharan said that ICSI, the national professional body’s purpose is development and regulation of the profession of company secretaries. It has over 35,000 members and over 4 lakh students on its rolls. CS R. Sridharan announced ICSI’s initiatives for students and members for the year 2014-15 and their action plan. CS Vikas Y. Khare, Vice President, The ICSI; CS C. Sudhir Babu, Council Member, The ICSI; and CS Vasudeva Rao Devaki, Chairman, Hyderabad Chapter of ICSI were also present on the occasion.

Speaking further CS R. Sridharan said that the Companies Act, 2013 has conferred a wider interpretation of its recognition of role of company secretaries and redefined its scope. Secretarial Audit is introduced for the first time in the world in India. Under this, every listed company is required to attach with its Board’s report a report of secretarial audit. The secretarial audit is to be conducted by a company secretary in practice and if any other remarks are made by the company secretary, the board has to take cognizance and provide explanation for the same. Penal provisions are there in case of non-compliance with this. This is good for corporate governance. The provisions have enhanced the role of company secretaries, he said.

CS R. Sridharan, President, The ICSI informed that they have given a representation to the Government on Rules under Sec. 203 (1) of Companies Act, 2013. The rules have exempted private companies, which constitute 93% of all companies, from having company secretaries. These have also exempted public companies with paid up capital less than 10 crore and thereby another 5% plus companies from having company secretaries. This means that these functions are not required to be performed by more than 99% of the companies which can’t be the legislative intention. Rules mandate appointment of a company secretary only for listed companies and public companies with a paid-up capital of Rs 10 crore or more. Key Managerial Personnel (KMPs) need to be appointed in every listed company and every public company having paid up capital of Rs 10 crore or more. Company secretaries are part of KMP, along with managing director or CEO, a whole-time director and the chief financial officer. ICSI wants the threshold of paid up capital of 10 crores be kept at Rs. 5 crore. This issue and some other issues have been highlighted and given as representation to the Government. We are expecting changes in the rules and amendments, he said.

Elaborating about ICSI’s new initiatives for students, CS R. Sridharan, President, The ICSI said that in order to leverage technology to the fullest, the Institute has decided to introduce Computer Based Examination for Foundation Programme w.e.f June 2014. The Institute has decided to introduce Computer Based Examination (CBE) for its Foundation Programme students from June 2014 onwards and examinees would continue to be assessed through Multiple Choice Questions (MCQs).

 

Also The Institute has decided to introduce Open Book Examination (OBE) in all the five elective subjects 1. Banking Law and Practice; 2. Capital, Commodity and Money Market; 3. Insurance Law and Practice; 4. Intellectual Property Rights-Law and Practice; and 5. International Business -Laws and Practices; from June 2014 onwards. However, in all other subjects / modules of Professional Programme (New Syllabus), students would continue to be examined as per traditional pattern of examinations.

OBE is to inculcate and develop skills of creative thinking, problem solving and decision making amongst students of its Professional Programme and to assess their analytical ability, real understanding of facts and concepts and mastery to apply, rather than to simply recall replicate and reproduce concepts and principles in the examination.

There is a shortage of company secretaries in India. There is a lot of scope and opportunity in this field. Scope of company secretary is becoming very broad with corporate expansion and growth. Presently there are about 35000 company secretaries (either working or practicing independently) in India. There are over 4 lakh students pursuing Company Secretary training across India. In Hyderabad alone, there are about 8000 students pursuing Company Secretary training. Nearly two to three thousand students register for the course every year. All registered companies require services of Company Secretaries. Yearly an average of 2000 students come out of The ICSI each year. Knowledge wise and performance wise, Company Secretaries are doing very good, opined CS R. Sridharan. The institute is in constant endeavour towards the transitioning of Company Secretaries as Governance Professionals, he added.

The ICSI aims to constantly develop competence of its members and the profession by providing specific trainings at various platforms, bringing out effective guidelines on various professional development activities and harnessing many National and International tie-ups. Many Professional development initiatives are planned; revision of study circle, availability of secured E-resources and the workshops on capacity building of professionals under the new Company Law will be scheduled soon. The Institute will be organizing Investor Awareness Programmes too.

The Institute of Company Secretaries of India (ICSI) has joined hands with the Insurance Regulatory Development Authority (IRDA) to organise a Seminar on ‘Convergence between Company Law and Insurance Law’ tomorrow i.e. Saturday, 26th April, 2014 at Taj Deccan, Hyderabad to deliberate on the intricate issues and dimensions of intersection of Governance and Company Law in respect of insurance sector.

Mr. T. S. Vijayan, Chairman, Insurance Regulatory Development Authority will be the Chief Guest and will be releasing ICSI publication titled “Insurance Handbook – Guide to aspiring compliance professionals in insurance”. Distinguished experts from professional fraternity, regulators and academia will also address on the occasion.