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As the fraternity is aware,, SEBI has through amendments introduced to the above Regulations in the month of December 2024 made a slew of changes to give effect substantially to the recommendations of the Expert Committee appointed by it ostensibly to review the provisions in the above Regulations w
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FAQ :
SEBI has amended Regulation 6(1) of the LODR Regulations to stipulate that the Company Secretary, acting as the Compliance Officer, must be an officer in full-time employment and positioned no more than one level below the Board of Directors, also designated as Key Managerial Personnel.
SEBI has clarified that 'one level below the Board of Directors' refers to the position in the organisation structure. It means one level below the Managing Director or Whole-Time Directors. If these roles don't exist, it means one level below the CEO, Manager, or person handling daily affairs.
The Expert Committee recommended strengthening the Company Secretary's position as it was not commensurate with their statutory duties. The amendments aim to ensure they can effectively discharge their responsibilities by giving them a more prominent place in the corporate hierarchy.
Being designated as Key Managerial Personnel, as defined under Section 2(51) of the Companies Act, 2013, formally recognises the Company Secretary's importance and elevates their standing within the company's structure.
The amendments, along with SEBI's clarifications and informal guidances, aim to harmonise the provisions of the Companies Act and the LODR Regulations, ensuring a clearer understanding of the Company Secretary's role and reporting lines.
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