The company secretary is a profession which requires the individual to be acquainted with the latest norms under the company law and all the legal/statutory compliances of a company whether public or private, bank or any organization which runs on the basis of broader company laws.
In the company secretary course there are 3 levels of programmes starting from the foundation programme, after which comes executive programme and finally, the last one is the professional programme.
All of these programmes are carried through multiple papers which are further arranged within the modules. In all the chapters which are based on the corporate compliance, there is one subject capital market and security market.
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It is very important to study the capital market while being the professional company secretary in india as it has the significant role in the company rules and compliance regulation once the company is listed on the stock exchange.
There are various responsibilities of company secretary in the capital market such as:
- The SEBI Act or Securities and Exchange Board of India has multiple enactments which are to be followed by the company secretary in the process of listing requirements.
- At the time of public issue and listing, there is regulation which is to guided by the company secretary to the company.
- The company secretary has to check all the rules and provision related to the internal audit statement, certifications and number of other compliance
- The CS professionals have to prepare mandatory compliance certificate to the SEBI for proper listing.
- The company secretary in India has to draft prospectus, securities documents and approval listing or delisting of the securities.
Thus the company secretary has to keep advocating all the corporate legislation on the behalf of the company for ensuring a transparent image and to earn the good faith of investors. The CS leads the company in the direction of good corporate governance and complying with all the norms and governance practices as per SEBI.
Also, it must be noted that the capital market regulatory compliance handling is a part of company secretary professional duties and mandatory responsibilities.
Multiple Areas For Company Secretaries To Practice in Capital Market
One of the important segment of the securities market is the public issue of equity shares because it activates the Corporate Sector, to enhance the resources needs for doing business and relevant purposes.
Company Secretaries in India are part of IPO team which is imperative considering a public issue, starting with price band fixation and working for the due diligence procedure of an IPO/FPO. Considerably they work with grace to work in the following process:
Making sure that the investors understand the depth of the issue.
Co-coordinating and directing the working process with Bankers, Registrars, Underwriters and relevant intermediaries.
Establishing a platform for promoters/entrepreneurs/companies in order to provide various resources.
Operating as per the different laws including Companies Act, Regulations and Guidelines issued by SEBI and Stock Exchange needs.
Compliance as per the Securities Contracts (Regulation) Act, 1956, Articles of Association and different applicable regulations and rules.
Conformity along with Listing Conditions mentioned under SEBI Act, SCRA and the provisions described under Stock Exchanges.
Conformity to the rules concerning to Issue of Capital and Disclosure Requirements.
What all Knowledge and Competency Required by CS in Capital Market
Company Secretarial Practice renders a deep knowledge of the various steps under the Companies Act, Rules, and Regulations.
Company Accounts, Cost and Management Accounting renders an understanding of procedures and accounting principles for companies in relation to statutory needs, accounting practices, and techniques.
Strategic Management, Alliances, and International Trade render knowledge of processes, techniques, and concepts concerning strategic management, risk management, management information systems.
Due Diligence and Corporate Compliance Management is able to provide a deep knowledge of the composite legal due diligence regarding corporate compliance management.
Financial, Treasury and Forex Management is able to spread conceptual meaning and clarity on the techniques and management tools utilized in financial planning.