• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

NEW DELHI, April 18

THE Securities and Exchange Board of India (SEBI) on Thursday asked the Institute of Chartered Accountants of India (ICAI) to formulate specific accounting standards or even revamp some of the existing accounting principles to deal with the emerging situations in the Indian capital markets.

"We need more specific accounting principles to deal with newer developments like T+3 rolling settlements. There will also be more mergers, especially among the entities in the financial sector including the stock exchanges, which are likely to get de-mutualised and corporatised. We need specific accounting standards to deal with such situations,'' the Executive Director of SEBI, Mr Pratip Kar, said here on Thursday.

He was delivering a keynote address at a national workshop on "Accounting Standards: Towards International Best Practices" organised by Confederation of Indian Industry (CII). Mr Kar stressed the need for a specific accounting standard on accounting for financial derivatives. "The Institute must be alert and ready to come up with accounting standards on new developments," he said.

The senior SEBI official held that the ICAI should leverage on its "statutory backup" as a self regulated organisation to strengthen its disciplinary mechanism. "In India, we cannot afford an Enron. The regulator should be able to take punitive action against errant CA firms. SEBI has come across a number of certifications in the financial services sector, where the quality of audit leaves much to be desired,'' Mr Kar said.

Send this article to Friends by E-Mail

Stories in this Section
SAIL trims limestone production

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line