ICSI Notification Draft of Company Secretaries (Amendment) Regulations, 2023
ICSI Notification Draft of Company Secretaries -In a significant move aimed at enhancing the professional landscape of Company Secretaries in India, the Institute of Company Secretaries of India (ICSI) has notified the Draft Company Secretaries (Amendment) Regulations, 2023. These amendments, proposed on 26th July 2023, seek to revise the Company Secretaries Regulations, 1982 and bring them in line with the evolving expectations and responsibilities of Company Secretaries in the corporate governance ecosystem.
As a statutory body under the Company Secretaries Act, 1980, ICSI is tasked with regulating and developing the profession of Company Secretaries across India. It operates under the Ministry of Corporate Affairs, Government of India. This draft notification is an important step in strengthening accountability, streamlining administrative processes, and ensuring greater transparency in the functioning of the Institute and its members.
What’s New? Key Highlights of the Draft Amendments
Let’s break down some of the most notable changes introduced by the draft regulations:
1. Register of Members: Keeping the Records Updated
The proposed amendment to Regulation 3 focuses on improving data accuracy by requiring members to maintain their details in the prescribed format (as per Schedule ‘A’). More importantly, it mandates that any changes to this information—whether it’s a change in address, employment, or contact details—must be updated with the Institute within 30 days. This will ensure that the ICSI maintains an up-to-date and accurate database of all its members.
2. Certificate of Practice: New Criteria for Grant and Refusal
The amendment to Regulation 10 introduces a key requirement: an Orientation Programme. Members who wish to apply for a Certificate of Practice (CoP) will first need to successfully complete this programme. Applications must be submitted in the designated form along with the applicable fees. The Council also reserves the right to refuse issuance of a CoP under certain conditions, such as non-compliance or failure to meet the eligibility criteria.
3. Disciplinary Panels: Raising the Bar for Governance
A completely new provision, Regulation 15AA, requires the Council to create panels of eligible individuals for nomination to the Board of Discipline and the Disciplinary Committee. These panels will include experienced professionals such as retired officers from relevant government services and other individuals of high repute in fields related to law, finance, or governance. This is a strategic move to ensure that disciplinary proceedings are handled by individuals with the requisite knowledge and experience.
4. Allowances for Disciplinary Bodies: Recognizing Contributions
With the introduction of Regulation 15AB, the draft provides for daily allowances, sitting fees, and reimbursement of expenses for the Presiding Officer and members of the Disciplinary Bodies. These allowances are subject to specific conditions and are intended to acknowledge the time and effort contributed by these individuals towards upholding professional ethics and discipline.
5. Transparency in Complaints and Disciplinary Actions
One of the more progressive changes is Regulation 15AC, which promotes transparency by requiring the Institute to regularly update the status of actionable complaints and disciplinary matters on its official website. Stakeholders and the public will now be able to track the progress of cases before the Disciplinary Directorate, Board of Discipline, and Disciplinary Committee.
6. Other Noteworthy Changes
The draft also includes several administrative and procedural updates, such as:
Provisions regarding auditors,
Mechanisms to handle election disputes,
Clarification on the roles and duties of office bearers,
Guidelines for the registration of firms, and more.
These changes aim to simplify processes, reduce ambiguity, and align with modern governance practices.
Public Participation: Your Voice Matters
In line with democratic and consultative practices, ICSI has opened the floor for public comments. Any individual, organization, or stakeholder who may be affected by these proposed amendments is invited to submit objections or suggestions to the Secretary of the Institute. All feedback received during this period will be reviewed by the Council before finalizing the regulations.
Once approved by the Central Government, the amended regulations will be published in the Gazette of India and come into force officially.
A Timely and Progressive Reform
The Draft Company Secretaries (Amendment) Regulations, 2023 reflect ICSI’s proactive approach to elevating the professional standards and governance mechanisms of the Company Secretary profession in India. By introducing more structured processes, enhancing transparency, and recognizing the evolving role of professionals in today’s corporate world, the Institute is laying a strong foundation for the future.
These proposed changes are not just administrative upgrades—they are part of a broader vision to ensure that Company Secretaries continue to be trusted advisors and governance leaders in the Indian corporate sector. Stakeholders are encouraged to actively participate in the consultation process and contribute to the shaping of a more resilient and responsible professional ecosystem.
