Sebi’s new format for annual secretarial audit of listed entities
Markets regulator Securities and Exchange Board of India (Sebi) on Friday came out with the format for listed entities for preparing their annual secretarial audit and compliance reports.
This would also be applicable for the "material unlisted subsidiaries" of the listed entities, the regulator said in a circular.
Coming out with the circular regarding format for "annual secretarial audit report and annual secretarial compliance report for listed entities and their material subsidiaries", Sebi said the compliance report should be submitted to the exchanges within 60 days of the end of a financial year.
Currently, under the Companies Act, the entities are required to file an annual secretarial audit report by practising company secretaries.
The annual secretarial audit reports are meant to keep a tab on entities regarding compliance with applicable laws.
The listed entities and their material subsidiaries would have to provide relevant documents and information to the practising company secretary in order to obtain the certification.
"The ICSI (Institute of Company Secretaries of India) may consider issuing a guidance note to practising company secretaries to enable them to undertake certifications in accordance with the regulations and this circular in letter and in spirit," the watchdog said.
As per Sebi norms, every listed entity and its material unlisted subsidiaries incorporated in the country should undertake secretarial audit and shall annex with its annual report, a secretarial audit report, with effect from the year ended March 31, 2019.