SEBI modifies term 'Secretarial Audit' to 'Reconciliation of Share Capital Audit'

The Securities and Exchange Board of India (SEBI) has decided to modify the terminology 'Secretarial Audit' to 'Reconciliation of Share Capital Audit' with immediate effect.

Issuing this directive, the Securities and Exchange Board of India (SEBI) said the modification was necessitated by a volley of representations for changing the term 'Secretarial Audit.'

The term `Secretarial Audit, it was argued, encompassed a wider area pertaining to examination of corporate and secretarial records of the company and cannot be restricted to merely audit for reconciliation of share capital.

SBI said it has now decided to modify the terminology 'Secretarial Audit' as mentioned in its earlier circular issued on 31 December 2002 and that that circular stands amended now.

SEBI has advised stock exchanges to make necessary amendments, if required, to the relevant bye-laws or rules and regulations for implementation of the above directive.

Depositories are also expected to make required amendments, to the relevant byelaws and regulations for the implementation of the SEBI directive and bring the provisions of the SEBI circular to the notice of the registrar and share transfer agents.