SEBI forms new panel to take up disclosures, accounting standards
September, 14th 2006
The Securities and Exchange Board of India has constituted a new committee on disclosures and accounting standards, headed by Mr Y.H. Malegam.
The capital markets regulator had earlier constituted two committees, both chaired by Mr Y.H. Malegam. While the committee on disclosures was set up to advise SEBI on issues related to the disclosure requirements in the documents pertaining to the offering of securities in the primary market, the accounting standards committee was set up to consider accounting standards in line with the Indian laws and best international practices and also to consider and recommend uniform accounting norms for the capital market and its intermediaries in India.
These two committees have now been merged to form SCODA or the SEBI Committee on Disclosures and Accounting Standards in a bid to address the overlaps in the areas addressed by them.
The terms of reference of the committee are to advise SEBI on issues related to the disclosure requirements in the offer documents/application forms/advertisements and in any other mode of mass communication used by the issuer for protecting the interests of the investors and improving the overall efficiency of the market.
It is also to review continuous disclosure requirements of listed companies and for disclosures, valuation methods and standard norms for intermediaries operating in the capital market. The committee will additionally advise SEBI on issues for addressing the operational and systemic risks, if any in the primary securities market.
The committee will also ensure smooth implementation of accounting standards, statements guidance notes and studies evolved by the ICAI to the extent that it pertains to disclosures in the capital market documents and for disclosures related to intermediaries.
It will suggest how best to coordinate between SEBI and ICAI, such as by constituting study teams for providing inputs to accounting standards board (ASB) and capital markets committee and for providing inputs to ICAI for evolving new accounting standards and reviewing the existing accounting standards.