Source: The Indian Express, Mauy 20 2012
Market regulator Securities and Exchange Board of India (Sebi) is all set to tackle corporate frauds by listed firms and market entities through its newly set up Forensic Accounting Cell.
“We have recently created a forensic accounting cell inside Sebi and we will look into samples for filings and check for discrepancies,” said Sebi chairman UK Sinha on Saturday. The unit has been set up in the wake of many complaints by investors of companies rigging their financial results and disclosure statements, such as the financial irregularities by former software firm Satyam.
To tackle this menace, Sinha, who was speaking at a seminar on ‘Reporting on Securities Markets — Issues and Challenges’ said that the cell would study the consistency in disclosures made by a listed firm and in case of any wrongdoing forward the report to the market regulator.
The cell, which includes highly trained accountants and experts, is expected to help assist in detection of financial irregularities so as to serve as an effective early warning mechanism.
Internationally, such dedicated teams have been set up by other regulators as well, such as the Office of the Chief Accountant, at the US Securities and Exchange Commission, who helps ensure that disclosures are accurately filed. To address this problem of bungling of financial statements, Sebi has also asked stock exchanges to look into filings by companies and check for discrepancies.
Sinha said Sebi had taken a series of measures in the recent years to enforce compliance and curb market manipulation. “Sebi is not a perfect institution, but we are trying to improve,” he said.
Speaking at the event, Shekhar Gupta, Editor-in-Chief, The Indian Express, called for better coverage of corporate investigations by the media.
Market regulator Securities and Exchange Board of India (Sebi) is all set to tackle corporate frauds by listed firms and market entities through its newly set up Forensic Accounting Cell.
“We have recently created a forensic accounting cell inside Sebi and we will look into samples for filings and check for discrepancies,” said Sebi chairman UK Sinha on Saturday. The unit has been set up in the wake of many complaints by investors of companies rigging their financial results and disclosure statements, such as the financial irregularities by former software firm Satyam.
To tackle this menace, Sinha, who was speaking at a seminar on ‘Reporting on Securities Markets — Issues and Challenges’ said that the cell would study the consistency in disclosures made by a listed firm and in case of any wrongdoing forward the report to the market regulator.
The cell, which includes highly trained accountants and experts, is expected to help assist in detection of financial irregularities so as to serve as an effective early warning mechanism.
Internationally, such dedicated teams have been set up by other regulators as well, such as the Office of the Chief Accountant, at the US Securities and Exchange Commission, who helps ensure that disclosures are accurately filed. To address this problem of bungling of financial statements, Sebi has also asked stock exchanges to look into filings by companies and check for discrepancies.
Sinha said Sebi had taken a series of measures in the recent years to enforce compliance and curb market manipulation. “Sebi is not a perfect institution, but we are trying to improve,” he said.
Speaking at the event, Shekhar Gupta, Editor-in-Chief, The Indian Express, called for better coverage of corporate investigations by the media.
Business and Corporate accouting frauds and white collar crimes has been of of the most problem that many businesses tend to face these days - and that this shall require more credible CPA's who took their online cpa cpe.
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