Apropos "Sebi moves forward" (March 14), the Securities and Exchange Board's (Sebi) approach to bar wilful defaulters - whether promoters, companies or directors - from accessing the capital markets and from taking board positions in listed companies is most welcome. It will discipline wilful defaulters and also compel other corporate borrowers to be fair and transparent in the conduct of their loan accounts.
The exchange of information among all regulatory bodies including Insurance Regulatory and Development Authority, other statutory authorities like provident fund (PF) organisation and tax authorities would be of immense help to discipline borrowers so that they comply with regulatory requirements.
The Chartered Accountants Association of India has to take a cue from the approaches of both Reserve Bank of India and Sebi, and ensure their members qualify the final accounts and the corporates do not fudge the accounts in any manner to camouflage information on bad debts, tax dues, PF dues, et al.The exchange of information among all regulatory bodies including Insurance Regulatory and Development Authority, other statutory authorities like provident fund (PF) organisation and tax authorities would be of immense help to discipline borrowers so that they comply with regulatory requirements.
Dr T V Gopalakrishnan
(This letter appeared in Business Standard dt 15/3/16)
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