Corporate Updates – 15-09-2017

Secretarial Standards – ICSI:

The Secretarial Standards as issued by the ICSI has touched new benchmark as the Malaysian Association of Company Secretaries (MACS) has requested MCA to adopt the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) as the benchmark of Secretarial Standards for the corporates in Malaysia. It is a matter of prestige that our Secretarial Standards are to be adopted / benchmarked by a foreign sister institution in the course of formulation of their own similar standards. Further, the Ministry of Corporate Affairs has approved a request of the Malaysian Association of Company Secretaries (MACS) for adoption of the Secretarial Standards issued by the Institute of Company Secretaries of India (ICSI) as the benchmark in the development of Secretarial Standards of MACS. The Secretarial Standards on Meetings of the Board of Directors and Secretarial Standard on General Meetings were approved by the Ministry of Corporate Affairs, Government of India under sub-section 10 of Section 118 of the Companies Act, 2013 and are in place with effect from 1st July, 2015. It is a matter of prestige that Indian Standards are to be adopted/benchmarked by a foreign sister institution in the course of formulation of their own similar standards.

MCA:

MCA has issued Clarification regarding obligation with the Indian Accounting Standards (Ind AS) and Rule 4 of Companies (Indian Accounting Standards) Rules 2015 w.r.t payment banks, small finance banks which are subsidiaries of Corporates. The matter has been examined and it is hereby clarified that the holding Company if it is covered by the Corporate sector roadmap for implementation of IND AS, shall follow the corporate sector roadmap and if the Company has got payment bank or small finance bank as its subsidiary then subsidiary Company shall follow the banking sector roadmap prescribed by RBI. However, the payment banks or small finance banks shall provide the In AS financial data to its holding Company for the purpose of consolidation.