Sebi allows company secretaries to certify cos' refund process

Markets watchdog Sebi today allowed independent practising company secretaries to certify the refund made by firms in a public offer involving allotment of securities to more than 49 but up to 200 investors in a financial year.
Currently, only independent practising chartered accountants are allowed to certify the repayment.
The Securities and Exchange Board of India (Sebi), in December 2015, said that unlisted companies raising funds through securities without having a public offer document will be exempt from penal action if they provide a refund option along with 15 per cent interest rate at the time of issuance.
This relaxation is be applicable to entities that have raised funds by issuing securities to more than 49 persons, but up to 200 individuals in a financial year.

Under the Companies Act, 2013 -- most of whose provisions came into effect from April 1, 2014 -- any offer or allotment of securities is considered a public issue if the number of allottees exceeds 200 persons in a financial year. This provision replaced the cap of 49 persons in the Companies Act, 1956.
In a circular issued today, Sebi said the repayment made by the company following the option for refund exercised by investors will have to be certified by independent practising chartered accountants or company secretaries.
Earlier, the rules provided for "submission of a certificate from an independent peer reviewed practising Chartered Accountant certifying compliance."

"It has now been decided that the certification as ...May also be provided by an independent peer reviewed proctoring Company Secretary," Sebi noted.