To curb instances of companies submitting
misleading information in their filings, the government has said that
strict action will be initiated against professionals who certify such
submission. Registered chartered accountants, cost accountants and
company secretaries have been allowed by the Ministry of Corporate
Affairs (MCA) to authenticate the documents filed with it in the
electronic mode. The new Companies Act, wherein most of the provisions
have come into effect from April 1, has stringent clauses to ensure that
correct information is provided by corporates while submitting the
required documents to MCA. Strengthening efforts to ensure integrity
and correctness of filings, the ministry on May 7 asked all Regional
Directors and Registrars of Companies to carry out "quick inquiry"
against professionals who have certified documents that have false or
misleading information. Action will also be initiated in cases where
the filings have omitted material facts or have provided incomplete
information. According to a circular issued on May 7, violations could
result in debarment of the concerned professional from filing any
document on the MCA portal. In cases where misleading information has
been submitted in the filings, an inquiry will be conducted before
deciding on any action. The Ministry has asked the Regional Director or
the Registrar to "conduct a quick inquiry against the professionals who
certified the form and signatory thereof including an officer in
default who appears prima facie responsible for submitting false or
misleading or incorrect information".
The entity concerned will be given 15-day notice to respond.
"The Regional Director or the Registrar will submit his/her report in respect of the inquiry initiated, irrespective of the outcome, to the E-Governance cell of the Ministry within 15 days of the expiry of period given for submission of an explanation," the circular said.
After going through the matter, the ministry's e-Governance cell would issue necessary instructions to the Regional Director/Registrar of Companies.
"The E-Governance cell will thereafter refer such cases to the concerned institute for conducting disciplinary proceedings against the errant member as well as debar the concerned professional from filing any document on the MCA portal in future," the circular said.
Registered members of Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI) and Institute of Cost Accountants of India (ICOAI) can "authenticate correctness and integrity of documents being filed by them with the MCA in electronic mode.
The entity concerned will be given 15-day notice to respond.
"The Regional Director or the Registrar will submit his/her report in respect of the inquiry initiated, irrespective of the outcome, to the E-Governance cell of the Ministry within 15 days of the expiry of period given for submission of an explanation," the circular said.
After going through the matter, the ministry's e-Governance cell would issue necessary instructions to the Regional Director/Registrar of Companies.
"The E-Governance cell will thereafter refer such cases to the concerned institute for conducting disciplinary proceedings against the errant member as well as debar the concerned professional from filing any document on the MCA portal in future," the circular said.
Registered members of Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI) and Institute of Cost Accountants of India (ICOAI) can "authenticate correctness and integrity of documents being filed by them with the MCA in electronic mode.
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