ICSI requests for Standardized Format for reporting under Rule 9A of Companies (Prospectus and allotment of Securities) Rules, 2014 [Read Representation]

The Institute of Company Secretaries of India ( ICSI ) has submitted a representation to the Ministry of Corporate Affairs (MCA) requesting a standardized format for the reporting under Rule 9A of Companies (Prospectus and allotment of Securities) Rules, 2014

Recently, the Ministry had amended the Companies (Prospectus and Allotment of Securities) Rules, 2014 and inserted Rule 9A pertaining to Issue of securities in dematerialised form by unlisted public companies mandating that “Every unlisted public company shall issue the securities only in dematerialised form; and facilitate dematerialisation of all its existing securities in accordance with provisions of the Depositories Act, 1996 and regulations made thereunder”.

Furthermore, pursuant to sub-rule (8) of rule 9A of the abovementioned rules, “The audit report provided under regulation 55A of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 shall be submitted by the unlisted public company on a half-yearly basis to the Registrar under whose jurisdiction the registered office of the company is situated”.

The Regulation 76 of LODR (erstwhile Regulation 55A(1) of the SEBI (Depositories and Participants) Regulations, 1996)states that “Every issuer shall submit audit report on a quarterly basis starting from September 30, 2003 to the concerned stock exchanges audited by a qualified chartered accountant or a practicing company secretary, for the purposes of reconciliation of the total issued capital, listed capital and capital held by depositories in dematerialized form , the details of changes in share capital during the quarter and the in-principle approval obtained by the issuer from all stock exchanges where it is listed in respect of such further issued capital”.

The representation submitted by the ICSI said that it is important to provide a standardize a format of Audit report to the stakeholders and businesses. For this, the ICSI has also submitted a draft of the Format for Reconciliation of Securities Capital Audit Report by Unlisted Companies according to the rules.

The Institute also requested the Ministry to not to reject the filings made under rule 9A made in e-form GNL-2 till the time the Government notify the GNL-2.