Press Trust Of India / New Delhi Jun 06, 2009, 00:03 IST
The Ministry of Corporate Affairs (MCA) may seek quarterly financial statements of companies from market regulator Securities and Exchange Board of India (Sebi) as part of the exercise to evolve an early warning system to prevent a Satyam-like incident in future.
The quarterly reports filed by listed companies with Sebi could be obtained and scrutinised by the ministry to find out discrepancies and take appropriate actions, sources said.
Since the Satyam scam came to light, the MCA has been trying to develop an early warning system so that it can take advance action to prevent large-scale corporate frauds.
Under the current regulations, listed companies are required to submit annual financial statements to the Registrar of Companies, though they file such statements every quarter with the Sebi.
Besides quarterly financial statements, the ministry is also looking at the option of seeking information about the initial public offers (IPOs) to find out whether the funds raised from the public have been used for purposes declared in the prospectus.
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