SEBI
ALLOWS COMPANY SECRETARIES TO CERTIFY COS' REFUND PROCESS
Securities
and Exchange Board of India (“SEBI”) allowed Independent Practising
Company Secretaries to certify the refund made by firms in a public offer
involving allotment of securities to more than 49.However, the limit is restricted
to 200 investors in a financial year.
Currently,
only Independent Practising Chartered Accountants are allowed to certify the repayments.
SEBI, in
December 2015, directed that the unlisted companies raising funds through
securities without having a public offer document will be exempted from penal
action if they provide a refund option along with 15 per cent interest rate at
the time of issuance.
Above stated 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.
“According
to the Para 7 of the Circular issued the SEBI dated December 31, 2015 earlier:
Which require
submission of a certificate from an independent peer reviewed practicing Chartered
Accountant certifying compliance.
Now, It has been
decided that the certification as provided in Para 7 of the Circular dated
December 31, 2015 may also be provided by an independent peer reviewed practicing Company Secretary.”
SEBI Circular No. CFD/DIL3/CIR/ P/2016 / 53, dated
May 3, 2016.
