New Delhi: Capital markets regulator Sebi has revamped its expert committee on disclosure and accounting standards, which is mandated to suggest ways for improving disclosure framework for listed companies and accounting practices of various market entities.
The Sebi Committee on Disclosures and Accounting Standards (SCODA) was originally set up in 2006 under the chairmanship of noted chartered accountant Y H Malegam to advise the market regulator on disclosure requirements by companies at listing time and thereafter, as also about the accounting standards to be followed by various intermediaries.
The 17-member panel is now chaired by Tata Sons' Director-Finance Ishaat Hussain, while members include NSE chief Ravi Narain, HDFC AMC Managing Director Milind Barve, Bombay Shareholders' Association's A K Bakliwal and IT major Wipro's CFO and Executive Director Suresh Senapathy.
Besides, the panel also comprises representatives from Sebi itself and from the Finance and Corporate Affairs ministries, as also senior executives of Kotak Mahindra, SBI Capital Markets, Jubilant Life Sciences, M&M and Deloitte Haskins and Sells, as per a new notification from Sebi.
Other members are ICAI Governing Council Member C A Nilesh Vikamsey, International Management Institute Director Asish Bhattacharya and K P Saidharan from the Comptroller & Auditor General of India.
One of the major terms of reference of this committee is to advise Sebi on issues related to disclosure requirements in the offer documents, application forms, advertisements and other mode of mass communication by the issuers.
Besides, the SCODA also advises Sebi on issues related to the continuous disclosure requirements pertaining to listing of equity or debt of an issuer and on matters related to disclosure requirements of various market intermediaries.
It will also advise Sebi on issues for addressing the operational and systemic risks, if any, in primary market.
Its terms of reference also include ensuring "smooth implementation of accounting standards, statements, guidance notes and studies evolved by the Institute of Chartered Accountants of India (ICAI) to the extent that it pertains to disclosures in the Capital Market documents and for disclosures related to Intermediaries."
Besides, it would suggest how best to coordinate between SEBI and ICAI, such as by constituting study teams for providing inputs to Accounting Standards Board of ICAI and Making references to ICAI for consideration of ASB and Capital Markets Committee and for providing inputs to ICAI for evolving new accounting standards and reviewing the existing accounting standards.