The Hindu Business Line : `CEOs must certify all disclosures'

THE JPC probing into the stock scam said that the retail investors lacked confidence in the Indian stock markets and has recommended strict accountability by listed companies through certification by their chief executives, which if proved incorrect should attract criminal liability under the law.

Poor disclosures at the time of public issue and manipulative pricing of the ``issues'' by companies often result in robbing the uninformed investor.

``The main reason for such insignificant flow can be attributed to lack of confidence of the retail investors in the capital market'', the report said. In order to ensure that investors were well informed, "it is not only important to have full disclosures but also to ensure that these are authentic.'

``The committee recommends that the managing director/chief executive officer and one director of the company at least, must certify all disclosures made by the listed companies to be true and correct,"the report said.

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