Category: Company Secretary

August 26, 2022
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Tagged Company secretary, Cs, Icsi, India

Company Secretary – Career as a CS

CS can apply for jobs as legal experts, strategic managers, corporate planners, etc, Students belonging from any Streams except Fine arts can

Keywords – Company Secretary, CS, Corporate, ICSI, CA, Career as a CS

Career counselling program by Edumound

Written By – Nikhat Parveen

Edumound Presents a session of Career counselling with Guest Speaker ‘Miss Vrinda Agrawal’, hosted by Miss Tanya Bhadauria.

On being asked by Miss Tanya about the role of a CS, Miss Vrinda explains

The key differences between a CA and a CS

A CA can apply for jobs in the fields of auditing, accounting, taxation, consultancy, and management accounting, whereas a CS can apply for jobs as legal experts, strategic managers, corporate planners, executive secretaries, and chief advisors.

Is the course of CS provided by any College or Institution ?

Miss Vrinda explains that The Institute of Company Secretaries of India provides training to candidates aspiring to pursue CS. It is basically provided by the Government of India.

Watch Live Session – career as a CS

Students belonging from any Streams except Fine arts can pursue a CS course as it is a professional Course. It’s just you need to have that passion for it.

How can one prepare for CS and is there any Entrance exam for it ?

On being asked by the host, Miss Vrinda explains that Students pursuing Company Secretary course after 12th will need to pass 3 levels of examinations which are Foundation Programme, Executive Programme and Professional Programme to become a Company Secretary in India. Students who wish to pursue Company Secretary Course after graduation will need to complete 2 levels of examinations which are Executive Programme and Professional Programme.

Miss Vrinda also explains, Company Secretaries Course consists of

Foundation Programme
Executive Programme
Professional Programme

Admission to the CS course is open throughout the year. Examinations are held twice a year in June & December.

The CS programme Curriculum

Foundation Programme : it has four papers, namely,

Business Environment And Law
Business Management, Ethics & Entrepreneurship
Business Economics
Fundamentals Of Accounting And Auditing

Executive Programme has 8 papers which are divided in Module 1 and Module 2

Module I :

Jurisprudence, Interpretation & General Laws
Setting Up Of Business Entities And Closure
Company Law
Tax Law

Module 2 :

Corporate and management accounting
Securities law and capital markets,
Economic, Business And Commercial Laws
Financial And Strategic Management.

Professional : Miss Vrinda also clears that after clearing the CS Executive exam, a gap of 8 months is necessary before giving the CS Professional Exam. The Exam is divided into three modules that total 9 papers.

Is training compulsory for Company Secretary?

It is mandatory for a student to undergo 15 month Training (which is now 1 year for company secretary Professional passed students under Modified Training Structure).

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Role of Institutional and Small Investors | Capital Market | India

Capital market in India is very flexible in terms of accepting the investment. There are many types of investors and many types of investments two of them are explained below:

Keywords:- Institutional Investors, Retail Investor, SEBI

AUTHOR: NEETI SOLANKI

Capital market in India is very flexible in terms of accepting the investment. There are many types of investors and many types of investments two of them are explained below:

Institutional investors

The Institutional investor by term it sounds like they are individual investors but that is not true. Institutional investors are organizations or a company that pools the funds of different individuals together to invest it in a variety of schemes, funds etc. according to scheme or directions of the investors.

Following are the types of institutional investor:

Banks
Pension funds
Insurance company
Hedge funds
Venture capital funds
Mutual funds
Real estate investment trusts
Credit unions

If we compare individual retail investors from institutional investors, the latter tend to have a greater market influence. They are backed by portfolio managers who help them to calculate risk and take trade decisions. The capital market is governed by Securities Exchange Board of India and SEBI Regulations. Accordingly the investments made by institutional investor are also governed by Securities Exchange Board of India and SEBI Regulations.

Example of Institutional Investors

The leading institutional investors are BlackRock, Vanguard Asset Management, State Street Global Advisors and many more. These are all regulated by SEBI so that they can cause adverse effects in the capital market of the economy.

Foreign institutional investors are the type of institutional investors. This term is commonly used in India which refers to outside investors who invest in the country’s financial market. By definition, foreign institutional investor is an investor or an investment fund investing in a country other than the country in which it is registered. Foreign institutional investors are allowed to invest in primary as well as secondary markets of India under the country’s portfolio investment scheme.

Limit of investment by foreign institutional investors

Foreign institutional investors are generally limited to 24% of the paid-up capital of the Indian company receiving the investment. However, FIIs can invest more than 24% if the investment is approved by the company’s board and a special resolution is passed. The ceiling on FIIs’ investments in Indian public-sector banks is only 20% of the banks’ paid-up capital.

The Institutional investor are often called market makers of the capital market. Their investment amount is very huge and they invest in a variety of securities. They have a diverse portfolio. Presence of institutional investors creates a very positive effect in the capital market and the economy of the country. There are many benefits provided to them by the Securities Exchange Board of India under SEBI Regulations. For example there are many securities whose access is not allowed to retail individual investors, but there access is allowed to institutional investors. There are a type of securities which are reserved for institutional investor. In India, institutional investors are encouraged and promoted. Schemes, policies, guidelines are made considering them. It is very important to understand the one minute difference between mutual fund and institutional investor, that is institutional investors are an enterprise managing fund and not mutual fund itself.

RETAIL INDIVIDUAL INVESTORS

Every person who buys and sells or invests in equity, debt, or other securities in the capital market of an amount not exceeding twenty thousand rupees (Rs.20,000) through either himself or through an agent or a broker or by any other mode is known as retail individual investors. They are non institutional investors. Contrary to institutional investor they don’t have access to the perks and benefits available to the institutional investors.

Retail investors invest only a small amount in the market according to their risk appetite. Retail investors who are wealthy also have the option to invest in private equity and hedge funds. People always believe that retail individual investors are not well equipped and lack the knowledge required to invest in the capital market. As a result of which they are more likely to bear losses. They have fewer resources and skills to look for a better investment option which provides them good returns. Retail investors invest their own money and institutional investors invest and manage on behalf of someone else.

An investor who makes small size trades are also called pikers. They have freedom to invest in a company of any size, this benefits them as it provides them a varied range of options to invest in. They always have the opportunity to take advantage of small firm effect. If a company brings an initial public offer through a book-building process, it is compulsory to reserve some part (as may be prescribed) for retail individual investors. The Institutional investor appoint agents for monitoring the trade and appoint someone to the trade for them. But retail individual investors are more likely to do the trade and monitor the trade by themselves.

Conclusion

Although retail investors invest very less as compared to institutional investor but they play a major role in stabilizing the capital market. They save the capital market from being dominated by institutional investors. There role is equally important and their value doesn’t depends on the amount they invest in the market. Retail investor tends to invest for a longer period of time which benefits the company. They have three basic return expectations i.e. return on capital, return of capital and liquidity. Retail investor can add small cap, mid cap stock and large cap stock at their will. They tend to invest as a way of channelizing their savings and earn profits, their main intent is not trading and making it their main business. There risk appetite is comparatively low as that of institutional investor.

Both are equally important, also play a major role in stabilizing, running the market smoothly and not letting each other dominate the market.

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