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Sebi: auditors approval needed for hiring CFO
April, 06th 2010

In an effort to make the audit and accounting process of companies more transparent, the Securities and Exchange Board of India (Sebi) on Monday said firms must get approval from the audit committee before appointing a chief financial officer (CFO).

Sebi said the order was meant to ensure that CFOs have adequate accounting and financial management expertise to review and certify the financial statements of their firms.

The market regulator also ordered firms to submit to the stock exchange an auditors certificate while submitting the scheme for an amalgamation or merger.

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