Secretarial audit to all material unlisted Indian subsidiaries

SEBI circular dated February 08, 2019:

 

1. Secretarial audit is already compulsory for all listed entities under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Regulations”) in line with the provisions of the Companies Act, 2013.

 2. But Now SEBI has mandate Secretarial audit to be extended to all material unlisted Indian subsidiaries in line with the recommendations of the Committee on strengthening group oversight and improving compliance at a group level for listed entities.

3. Listed entities shall additionally, on an annual basis, submit the Annual secretarial compliance report to the stock exchanges within 60 days of the end of the financial year (format has been prescribed).

4.Practicing Company Secretaries (PCS) has to appoint for Secretarial audit in listed companies and all material unlisted Indian subsidiaries.

5. This circular shall come into force as under:

    a. With respect to the annual secretarial audit report, in the annual reports of the listed entities and the material unlisted subsidiaries from the financial year ended March 31, 2019 onwards.

   b. With respect to the annual secretarial compliance report, applicable to listed entities, with effect from the financial year ended March 31, 2019 onwards.