In a significant move to enhance professionalism and ensure quality compliance, the Institute of Company Secretaries of India (ICSI) has introduced a cap on the number of Annual Returns (E-form MGT-7) that can be signed by Company Secretaries in Practice. This decision was made during the ICSI's 312th Council meeting held on October 8-9, 2024.
From the financial year commencing April 1, 2025, a Company Secretary in Practice will be allowed to sign the annual return for no more than 75 companies, while a Peer Reviewed Company Secretary in Practice can sign for up to 125 companies. This cap is in line with Section 92(1) of the Companies Act, 2013, and is intended to ensure that the standards of service delivery and ethical conduct are upheld within the profession.
The introduction of these ceilings comes with additional changes in the Unique Document Identification Number (UDIN) Portal, ensuring that the signing process is accurate and transparent. The ICSI has raised concerns regarding the inaccurate generation of UDINs in some cases, and has emphasized that any violation of the ICSI UDIN Guidelines, 2019, will attract serious consequences.
The move has been welcomed by many in the corporate compliance sector, as it is expected to enhance the efficiency and integrity of the compliance process.
Official copy of the notification has been attached
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