In a move to promote transparency and improve corporate governance standards, the capital market regulator, the Securities and Exchange Board of India (Sebi), has proposed the formation an audit committee to oversee its financial reporting process and disclosure of financial information.
The committee will be headed by industry representative on the Sebi’s board, T V Mohandas Pai, who is a director on the board of Infosys Technologies Ltd. Other members are K P Krishnan and M S Sahoo. The tenure of the committee will be two years.
Sebi Chairman C B Bhave had earlier prescribed ethics for board members to improve transparency. The setting up of the committee is another move in this regard. The role of the committee will include changes in accounting policies and practices of Sebi and pointing out to the board major accounting entries involving estimates based on judgment by management and significant adjustments made in the financial statements arising out of audit findings.
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