IMPORTANCE OF ECSIN AND UDIN:
UDIN is Unique Document Identification number is system generated 18 digit number which needs to be mentioned on the documents either by printing or it can be handwritten on the document issued. This 18 digit number means first 2 digit means of the year (Current year i.e. in case of 2019 it would be 19) Next 6 digit would consist of the membership number (A12345) and next 10 digits would be system generated randomly generated alpha numeric number.
ICAI implemented UDIN from 1st July 2019 and now ICSI has also come up with UDIN from 1st October 2019. UDIN came to help the stakeholders and shareholders with checking of the authenticity of the documents. The Practicing company secretary(PCS) needs to issue documents which consist of this number. With this it will help to follow the guidelines issued by ICSI. This will help in easily maintaining the register of the documents/services documentation done by PCS. It helps banks, regulators to help checking the documents genuineness.
When UDIN to be used:
The practicing Company secretary needs to use this UDIN in the following case:
1. While issuing Secretarial Audit report in Form MR-3 as per Section 204 of the Companies Act,2013;
2. While giving Secretarial Audit report to Material unlisted subsidiaries of listed companies as per Regulation 24A of SEBI (LODR)Regulations,2015;
3. While certifying Annual return in MGT-8 as per Section 92(2) of Companies Act,2013 and Rule 11(2) of Companies(Management and Administration)Rules,2014;
4. While providing Annual Secretarial compliance report to the listed companies;
5. While issuing the certificate that the company has accepted investment from foreign investor as per FEMA;
6. While doing internal audit of the stock broker or sub brokers as per SEBI’s circular;
7. While doing diligence report required by banks for the finance/lending purposes;
8. For certifying under regulation 76 of SEBI(Depositories and Participants) Regulations,2018;
9. While doing the internal audit of Depository participants(DP) who are registered with CDSL or NSDL as per the laws;
10.While certifying that transfer, subdivision, consolidation, renewal, exchange/ endorsement of calls/ allotment monies certificate has been issued within 30 days’ time frame as per the Regulation 40(9) of SEBI(LODR)Regulations,2015;
11. While issuing the certificate that the director/directors are not disqualified/debarred for appointment by MCA/ by board/any other authority as per Schedule V as per the SEBI(LODR) Regulations,2015.
12. Any other if Practicing Company Secretary finds in quoting the UDIN then he/she can on voluntary basis if required.
How to generate UDIN:
As per the guidelines being issued it is compulsory to mention UDIN on the documents issued by Practicing Company Secretary(PCS) from 1st October 2019. One needs to register on UDIN portal and generate UDIN from http://udin.icsi.edu/. No fee is been charged for generation of UDIN. One don’t need to upload any document.
ECSIN has been approved and would be effective from 1st October 2019. ECSIN can be explained as Employee Company Secretary Identification number. It is mandatory for any appointment/ cessation of the Company Secretary as per Section 203 of Companies Act, 2013 with Read 8/8A of Companies (Appointment and remuneration of Managerial Personnel) Rules,2014. It is compulsory for all the consent of CS who are getting appointed or even those who are already appointed needs to generate ECSIN latest by 31st December 2019.
When ECSIN needs to be used:
While giving consent letter along with DIR-12 it is compulsory to quote ECSIN. Those whose DIR-12/form 32 has already been filed needs to generate this number too.
How to generate ECSIN:
1. One needs to visit https:ecsin.icsi.edu.
2. After that click on Member’s registration if you are using it for the first time where you need to fill details of membership number, ACS/FCS and date of birth and submit. Once submitted you need to generate password and the same login ID and password would be sent to your registered email address.
3. Once that is done login the same and generate ECSIN by selecting the tab Generate ECSIN. There one needs to specify company’s name, CIN number, Designation of employee, Employer’s registered address, date of offer letter, date of consent letter, date of appointment, website of employer, phone number of employer and e-mail ID of employer and click on generate ECSIN. The 18 digit ECSIN would be generated.
One can even search ECSIN by clicking on the tab of search ECSIN. The bank/regulators/others can even verify ECSIN by clicking on the homepage on right side’s option verify ECSIN.
So do not forget to comply with all the compliances whether you are PCS or CS in employment generate UDIN and ECSIN accordingly.