Environmental, Social and Governance (ESG) - Principles and Practice · Empowerment of the Company Secretary Profession

Penalty for Misuse of ICSI Name or Degree under Section 25

Updated 11 October 2026 · Fact-checked

Section 25 of the Company Secretaries Act, 1980 bans anyone from using the Institute's name or seal (or a deceptively similar one), awarding a Company Secretaryship-type degree or designation, or trying to regulate the profession. First conviction: up to six months' imprisonment, or fine of ₹1 lakh to ₹5 lakh, or both. Later conviction: up to one year, or fine of ₹2 lakh to ₹10 lakh, or both.

Understand Penalty for Misuse of ICSI Name or Degree under Section 25

The Institute of Company Secretaries of India is the only body that can admit members and regulate the profession. Section 25 protects that position. It stops outsiders from borrowing the Institute's identity, selling look-alike qualifications, or acting as a rival regulator.

The section prohibits three acts, "save as otherwise provided in this Act":

Using a name or common seal identical to the Institute's, or so nearly resembling it as to deceive or likely to deceive the public.
Awarding a degree, diploma or certificate, or bestowing a designation, which indicates or purports to indicate the position or attainment of any qualification or competence in Company Secretaryship similar to that of a member of the Institute.
Seeking to regulate in any manner whatsoever the profession of Company Secretaries.

Notice the tests. For name and seal, the test is deception of the public. For the second limb, the test is whether the award indicates or purports to indicate a similar qualification or competence. The word "purports" means the person need not actually be competent or equal; the claim itself is enough.

The penalty was raised with effect from 10 May 2022. Earlier, a first conviction meant only a fine up to one thousand rupees. Today, the law allows imprisonment as well as a substantial minimum fine, and a higher punishment for repeat offenders.

Do not confuse this with Section 24. Section 24 punishes individuals who falsely claim to be members, use the designation Company Secretary or the letters A.C.S. or F.C.S., or practise without a certificate of practice. Section 25 targets misuse of the Institute's name, awarding of look-alike qualifications, and attempts to regulate the profession.

Key rules to remember

Prohibited acts under Section 25(1): (a) identical or deceptively similar name or common seal; (b) awarding degree, diploma, certificate or designation indicating similar Company Secretaryship qualification; (c) seeking to regulate the profession; Applies to 'no person', so it covers individuals, firms, institutes and companies.
Penalty on first conviction: Imprisonment up to 6 months, or fine of not less than ₹1,00,000 but up to ₹5,00,000, or both; Substituted with effect from 10-5-2022. Applies without prejudice to other proceedings.
Penalty on subsequent conviction: Imprisonment up to 1 year, or fine of not less than ₹2,00,000 but up to ₹10,00,000, or both; Minimum fine is fixed, so state both the minimum and the maximum.
Related provision: Section 24: false claim of membership, use of 'Company Secretary', A.C.S. or F.C.S.; fine up to ₹1,00,000 on first conviction; Different section, different target. Do not mix the amounts.

How to solve Penalty for Misuse of ICSI Name or Degree under Section 25 questions

Use the same sequence for any case-based question on Section 25. It keeps your answer in the provision, analysis, conclusion format.

1Identify the act done by the person: using a name or seal, awarding a qualification or designation, or claiming to regulate the profession.
2Check whether Section 24 fits better, for example an individual writing A.C.S. after his name without being a member.
3State the relevant limb of Section 25(1) in plain words, with its test (deception, or indicating similar competence).
4Apply the facts to the test. Say whether the name resembles the Institute's enough to deceive, or whether the certificate indicates similar competence in Company Secretaryship.
5Check the exception: 'save as otherwise provided in this Act'. Confirm the person is not acting under the Act.
6Ask whether it is a first or a subsequent conviction.
7State the penalty with exact amounts and add that other proceedings are not barred.
8Close with a one-line conclusion and, if asked, a practical advice such as stop the use, withdraw the course, or report to the Institute.

Quickest way: Three limbs, two penalty tiers

When to use it: Use when you have little time and the question asks for the offence and punishment.

Write the three limbs: name or seal, degree or designation, regulating the profession.
Write the first conviction tier: 6 months, or ₹1 lakh to ₹5 lakh, or both.
Write the repeat tier: 1 year, or ₹2 lakh to ₹10 lakh, or both.
Add 'without prejudice to other proceedings' and the date 10-5-2022 for the revised amounts.

Common mistakes in Penalty for Misuse of ICSI Name or Degree under Section 25

Mixing up Section 24 and Section 25.
Both deal with misuse of the CS title and sit close together.
Fix: Section 24 is about individuals falsely claiming membership or designation. Section 25 is about misuse of the Institute's name or seal, awarding look-alike qualifications, and regulating the profession.
Writing the old fine of ₹1,000 or ₹5,000.
Older notes and books still show the pre-2022 amounts.
Fix: Use the amounts in force: first conviction ₹1 lakh to ₹5 lakh; repeat ₹2 lakh to ₹10 lakh.
Saying the punishment is only a fine.
Students remember the fine and forget imprisonment.
Fix: State imprisonment (6 months or 1 year) or fine, or both, at each tier.
Ignoring the minimum fine.
Students quote only the maximum.
Fix: Say 'not less than ₹1 lakh but up to ₹5 lakh' and 'not less than ₹2 lakh but up to ₹10 lakh'.
Saying the offender must actually deceive someone to be liable under the name limb.
Misreading 'as to deceive or as is likely to deceive'.
Fix: Likelihood to deceive the public is enough. Actual loss need not be proved.
Applying Section 25 to a member who uses the CS designation properly.
Students forget the exceptions and Section 7.
Fix: Section 7 allows members to use the designation. Section 25 targets people with no authority.

Worked examples

Example 1

Sunrise Academy, Pune, starts a six-month course and awards a 'Diploma in Company Secretaryship' stating it is equal to the CS qualification. Advise on the legal position.

Show the solution

Act: awarding a diploma that purports to indicate a qualification in Company Secretaryship similar to that of an ICSI member.
Provision: Section 25(1)(b) of the Company Secretaries Act, 1980 bars any person from awarding such a degree, diploma or certificate.
Analysis: The diploma claims equality with the CS qualification, so it purports to indicate similar competence. Actual quality of the course is irrelevant.
Exception: Nothing in the facts shows authority under the Act.
Penalty: Under Section 25(2), on first conviction imprisonment up to six months, or fine of not less than ₹1 lakh but up to ₹5 lakh, or both. Other proceedings are not barred.

Answer: Sunrise Academy contravenes Section 25(1)(b). On first conviction it is liable to imprisonment up to six months, or fine of ₹1 lakh to ₹5 lakh, or both, without prejudice to other proceedings. It should stop awarding the diploma.

Example 2

A body called 'Institute of Corporate Secretaries of India' with a seal looking like the ICSI seal was found issuing membership cards. It was earlier convicted under Section 25 and is convicted again. What is the punishment?

Show the solution

Act: using a name and seal so nearly resembling the Institute's as to deceive or likely to deceive the public. This falls under Section 25(1)(a).
Analysis: 'Corporate Secretaries' and a similar seal are likely to mislead the public.
Conviction: This is a subsequent conviction.
Penalty: Imprisonment up to one year, or fine of not less than ₹2 lakh but up to ₹10 lakh, or both.

Answer: The body contravenes Section 25(1)(a). On the subsequent conviction it is punishable with imprisonment up to one year, or fine of ₹2 lakh to ₹10 lakh, or both.

Exam tips

Write the section limb in your answer, such as 'Section 25(1)(b)'. It shows precision.
Always give both the minimum and maximum fine, and the two tiers.
If the facts show an individual using A.C.S. or the title Company Secretary, name Section 24 instead.
Structure the answer: provision, facts, conclusion. Keep it under five short paragraphs.
Mention the 10 May 2022 amendment if the question asks how the penalty changed.

Practice questions from Empowerment of the Company Secretary Profession

Penalty for Misuse of ICSI Name or Degree under Section 25: frequently asked questions

What is Section 25 of the Company Secretaries Act, 1980?

It prohibits any person from using the Institute's name or seal or a deceptive look-alike, awarding degrees or designations indicating similar Company Secretaryship competence, or seeking to regulate the profession. Contravention is punishable under Section 25(2).

What is the penalty under Section 25 for the first offence?

Imprisonment up to six months, or fine of not less than ₹1 lakh but up to ₹5 lakh, or both. This applies without prejudice to other proceedings.

What is the penalty for a repeat offence?

Imprisonment up to one year, or fine of not less than ₹2 lakh but up to ₹10 lakh, or both.

What is the punishment for falsely using the title Company Secretary?

That falls under Section 24, not Section 25. A non-member who uses the designation Company Secretary or the letters A.C.S. or F.C.S. is punishable on first conviction with fine up to ₹1 lakh.