ICSI study material enough to clear CSEET; absolutely against private coaching: President

NEW DELHI: The Institute of Company Secretaries of India (ICSI) president CS Dhananjay Shukla, spoke to Careers360 about CS placements, technology, scholarships, internships, doctoral programmes and more. Edited excerpts:

Why should one become a company secretary?

In the evolving landscape of regulatory frameworks, company secretaries are being perceived as one of the most competent professionals across boardrooms. They have acquired the ability to navigate boards in terms of evolving trends in board functioning, regulatory frameworks, and, more importantly, the advent of the ESG framework. Over time, our role has evolved into an advisory role.

If a board is entering into any related party transaction, CS professionals are responsible for guiding them. The Companies Act, 2013 states that a company secretary shall report to the board of directors about the status of compliance with the Companies Act and all other applicable laws.

If I take the example of Haryana, setting up even a small company, particularly in the manufacturing sector, requires compliance with at least 48 laws. In today’s world, the importance of a CS is that of a corporate strategist – guiding corporations through the evolving legal framework.

Your CS evaluations are very tough, with the assessments requiring multiple attempts to clear the examination.

In my opinion, the Company Secretary Course syllabus is highly sophisticated. If a student is focused, he/she will be able to clear all examinations in one attempt. Company Secretary Executive Entrance Tests (CSEET) are held four times a year. CS Executive and CS Professional Programme Examinations are held twice a year, in June and December.

This apart, students need to undergo a mandatory 21-month practical training under a practising company secretary or a company registered with the ICSI. In total, it takes approximately three-and-a-half years to complete the CS qualification and apply for membership. Having said that, students who have taken multiple attempts are also successfully placed.

Any advice to students?

A minimum of 6-7 hours of regular studying can help students prepare in an orderly manner. Our academic department continuously guides them with apt materials. We also publish a magazine Student CS, which covers the most relevant syllabus, books, and materials. Our study materials are updated and curated to ensure that studying them properly is sufficient to clear the exam. They should also keep a tab on Chartered Secretary Magazine and Student Company Secretary Magazine to stay updated.

AI has changed quite a few roles, especially in the post-COVID era. Your thoughts?

In my opinion, AI will always serve as a supplement in facilitating our role as company secretaries. The advisory role of a CS will always remain functional. AI will never be able to completely replace the advisory function, where human judgement and interpretation play a crucial role. It can only be used as a tool to make our work easier.

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Do you facilitate student placements?

The ICSI has a dedicated placement portal that caters to its members and students as well as the recruiters. Besides that, the ICSI organises regular placement drives at its regional and chapter offices. The annual package may run into crores with experience.

What are your foreign collaboration initiatives?

The ICSI has established six overseas centres in Australia, Canada, Singapore, UAE, the UK And USA, to facilitate exchange of views and professional expertise. It has also signed MoUs with the Corporate Governance Institute (formerly known as ICSA), and its nine divisions, to provide reciprocal exemptions to subjects as well as training requirements to each other’s members. At the Chartered Institute for Securities and Investment (CISI), ICSI members can get membership without any examination.

Besides this, the Malaysian Association of Company Secretaries (MACS) has adopted the ICSI Secretarial Standards, for benchmarking its own Standards. The ICSI is also a member of Corporate Secretaries International Association Ltd (CSIA), International Valuation Standards Council (IVSC), and International Corporate Governance Network (ICGN) and is closely associated with the organisation for Economic Co-operation and Development (OECD).

The UK ENIC (erstwhile UK NARIC), UK’s national agency responsible for providing advice and guidance on vocational, academic and professional qualifications from over 190 countries worldwide, has recognised ICSI executive and professional programmes as equivalent to bachelors’ and masters’ degree respectively, in the UK & UAE.

What is the fee and if any scholarships for students from tier-3/4 cities?

For CSEET, Rs 2,000 is the registration fee for the CS executive programme. Students need to pay Rs 18,400 if they take the CSEET route and Rs 23,400 – Rs 5,000 more – if opting for the graduation route. For the CS professional programme, the fee is Rs 20,000.

However, the ICSI also provides scholarships/financial assistance to meritorious or economically backward students. The ICSI has a fee waiver/concession scheme for defence personnel, paramilitary forces personnel and their family members. Students from Jammu and Kashmir, Ladakh, Himachal Pradesh, and the northeastern states can also avail this benefit.

Many students believe they need coaching. What is your take?

I am absolutely against private coaching. The ICSI study materials are comprehensive enough to help students pursue the CS course without any coaching. However, it also organises classroom teaching at its regional and chapter offices. In December 2023, the ICSI started centralised online classes, which are free of cost and accessible globally. It also plans to start a digital library and social clubs to equip students with a comprehensive skill set.

How much does a fresher CS earn?

I believe remuneration is always dependent on knowledge and skill. A degree is just a stepping stone. Objectively, these days, an entry-level CS can earn anywhere between Rs 60,000-70,000 per month.

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The CS programme has recently received equivalence to a postgraduate programme. Any partnerships for doctoral programmes?

Our profession primarily serves the business and industry sectors. A CS can either work as a governance professional within a company or start a consultancy firm. Some are interested in academia, in 2021, the UGC recognised CS qualification as equivalent to a master’s degree, making students eligible for the NET exam.

In 2004, AICTE also recognised our fellow members as eligible to be appointed as assistant professors across B-schools. We are in discussions to renew this recognition. We have partnerships with several IIMs where our members can enroll for PhD, along with exchange programmes with Institutes of Eminence. Recently, we signed MoUs with DTU, NISM, and Gujarat Maritime Law to offer joint programmes.

Can you highlight some emerging fields or sectors?

Students completing the full-time course with NISM in collaboration with ICSI will become sought-after professionals for Nifty Fifty companies. Our tie-up with IIMs encourages students to pursue PhDs.

The Gujarat Maritime Law sector is another niche area. An emerging field is ESG (Environmental, Social, and Governance). Under Section 118, it is mandatory for all public and private companies to adhere to Secretarial Standards to ensure good governance – a responsibility entrusted to CS professionals.

Any concluding remarks which attract aspirants?

India currently has a 6.5% growth rate, and it is expected to rise further. By 2030, the demand for CS professionals will also rise. If we maintain this 6.5% growth rate, by 2047 we will need an additional 1 lakh CS professionals.