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August 2008

Auditing to be made mandatory for exchanges and depositories

By Raman Jokhakar, Tarunkumar Singhal, Chartered Accountants
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60 Auditing to be made mandatory for exchanges and depositories


The SEBI has decided to make it mandatory for stock exchanges
and depositories to annually audit their transactions as per new code of conduct
evolved by the market regulator.

Cases of exaggerated IPOs were also being looked into from
all possible ethical practices and those corporates that were found guilty for
insider trading would be dealt with strict provisions of the law and other
statutes, he added.

Providing a major relief to big corporates, market regulator
SEBI on Friday proposed to increase the time period for submitting consolidated
financial statements to stock exchanges at the end of each quarter.

“It is proposed that the existing timeline (within one month
at the end of each quarter) may be extended to two months for those companies
which opt to submit to stock exchanges the consolidated financial results in
addition to standalone financial results,” SEBI said while seeking comments on
the same by July 26.

(Source : Internet newswires, 14-7-2008)

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