The Hindu Business Line : ICSI proposes peer review for practising company secretaries

THE Institute of Company Secretaries of India (ICSI) proposes to bring in a system of peer review for practising company secretaries, the Institute's President, Mr R. Ravi, told Business Line.

The guidelines for this are in the process of being framed.

Peer review was recently brought in for chartered accountants by the Institute of Chartered Accountants of India.

On the sidelines of a seminar on IPOs, organised by ICSI, Mr Ravi said that the institute had recently agreed to a demand of its members for corporatising practising company secretary (PCS) firms. Till recently, PCS firms were either individual or partnership firms.

Now a partnership firm could convert itself into a company. The company can function as a PCS even if the promoters do not have a substantial stake in it.

However, the `compliance certificate' could be given only by individual company secretary, to ensure accountability, Mr Ravi said.

Also, practising members have now been allowed to take up position in boards of companies in which they do not have any substantial holding.

They may also function as `recovery consultants' for entities such as banks, Mr Ravi said.

Today, there are about 19,000 company secretaries in the country, of whom about 4,000 are practising company secretaries.

The others are employed by various companies.

Earlier, speaking at the seminar, Mr Ravi said that in 2003-04, there were 88 IPOs, through which about Rs 11,500 crore was mobilised. He said that it was important for company secretaries to understand IPO rules thoroughly.

Delivering the keynote address, Mr Arun Agarwal, Managing Director, Cholamandalam MS Insurance Company Ltd, said that both companies and the market benefited from IPOs.

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ICSI proposes peer review for practising company secretaries