SEBI gives recognition to company secretaries in practice. It is the new amendment from SEBI for issuing the certificate of compliance. Recognition for the Company secretary under SEBI is the outcome of the committee set to improve the corporate governance standards. The Registrar gets the certificate from the company secretary, and it is used during the share transfer and issue. Investment Companies and mutual fund houses appoint RTAs. They act as a middleman between the customers and financial institutions. They handle the notices, corporate actions, and issue of certificates. The recognition of SEBI adds diamonds to the crown of Company secretaries. The new areas of operations help the investment Companies to do their operations efficiently.
SEBI bestows upon Company secretaries new recognition with regulation dated 14th January 2022. To give due importance to the ease of doing the process, the investors want simplified functions. After making the necessary changes as per the circular, the Companies must get a certificate of compliance. The Companies need to get the certificate from practising Company secretaries within 45 days of the release of this circular.
The details of the changes are as under:
• The amendments say that to process the queries, service requests and complaints of the investor, the electronic channel is used.
• It is mandatory to collect the PAN, nomination and KYC details of the physical security holder.
• The changes or updating or registration of the contact details, nominee details, bank details and PAN is the service to the investor by the RTA.
• Issue of duplicate securities certificate, renewal or exchange of security certificate, consolidation of the security certificate, splitting of the security certificate, and subdivision of certificate, consolidation, endorsement and change in the holder name is the wide range of services to the investors.
• De-mat and Re-mat services.
• Claim for non-delivery of the certificate, transfer of unclaimed suspense account, transmission, transposition, and claim raised from unclaimed suspense account.
• The mismatch with the minor investor’s signature has to be checked with the banker. The security holder must be informed by speed post regarding the mismatch. If the holder has no objection, the service process continues. The signature in the folio and other signatures of the holder must be the same.
• The security holder needs to present bankers attestation and cancelled cheque as per the Form ISR-2.
• The difference in the name of the minor security holder is resolved with the alternative documents. The supporting documents are a unique identification number, valid passport, PAN card with photo, driving license, identity card with photo, divorcee decree, and marriage certificate.
• The existing norm for mismatch of the minor signature shall be in practice.
• The registered RTAs need to make use of an online PAN bulk verification facility to check the PAN details.
• Clause D of Annexure one circular dated 2011 October is also applicable to physical mode security holders.
• The documents for the proof of address are passport, sale agreement, flat maintenance bill and driving license. Three months before the current date is allowed in case of utility bills.
• Document or identity cards from central or state government, regulatory authorities, government departments, public sector undertakings, public financial institutions, and scheduled commercial banks are allowed for address proof.
• The registered address is also taken from FII, power of attorney given by FII and sub-account of FII.
• The proof of the spouse is also accepted.
• DP will provide the CML of the holder.
• RTA send the change of address through speed post to the security holder. If there is no response, then the old address as per the dividend warrant or bank statement is obtained.
• The hard copy of the document is saved if it is self-attested.
• The RTA follow the rules of SEBI, circulars of SEBI and Companies act, 2013. The indemnity of service will not be insisted on by the RTA.
• The form ISR-1 of the circular must be listed on the website of the RTAs and Companies. The RTAs process the services after receiving the form.
• RTAs maintain the PAN and KYC details of the holder with all the folios managed by it.
• The documents of the holder are provided through IPV. If the documents are hard copies, it is self-attested. If the documents are in electronic mode, it is with e-signature.
• After receiving the change or updating intimation, the change takes place from the intimation date.
• RTAs provide contact details on their websites, the website of the listed company and the stock exchange website.
• The complaints are allowed for one instance only.
• RTAs provide service through emails, service portals for the speeding process.
• The holders of physical securities must provide the details of KYC, PAN and nomination.
• To freeze the folios document submission is essential. The frozen folio status changes after the dematerialization of securities.
• The holder of physical securities must link the Aadhaar and PAN details.
ICSI view about SEBI circular:
ICSI is providing suggestions about the regulations, drafts, policies and guidelines issued by the regulatory bodies. CS recognised under SEBI regulations enhance the opportunities in the security law. Promoting investment and capital markets help during the recession. ICSI has active participation to promote the capital markets in India. The chapters of ICSI and regional centres conduct mega programs, lectures, discussions, investor awareness programs, and interactive meetings. ICSI institute conducts investor programs with PAN India. The amendments of SEBI works to protect the interest of the investors. Transparency and accountability bring technological developments in the capital markets. Company secretaries work with listed Companies as a compliance officers. They also work with capital intermediaries such as members of stock exchanges, mutual funds, depository participants, merchant bankers and other intermediaries. The mission of ICSI is to develop professionals with high calibre. The vision of ICSI is to promote good corporate governance and become a global leader in corporate governance.
The Union Budget 2022 is tailored for promoting investment. And control the tax through payment. The capital gains are taxed with fifteen per cent. Cryptocurrency gains are attributed to high tax brackets with thirty per cent. This model is to promote long term investments and control the gains. This system increases job opportunities. And also increases business income. After 2018, in 2022, the changes with the capital gains were introduced. To support the capital markets and investment an efficient process is crucial. SEBI make use of the Company secretaries to impart effective process in the capital markets.