Regulations not a remedy for fraud: Sebi whole time member SK Mohanty

According to a survey, 47 per cent respondents considered lack of visibility over third parties as the biggest concern to bribery and corruption

Calling for better use of technology to identify corporate frauds, the Securities and Exchange Board of India (Sebi) whole time member SK Mohanty said on Thursday that regulations solely cannot be the remedy to frauds.

“We as a regulator are also gearing up for various technological risks. But a corporate fraud is a post-mortem game when everything has happened. It is for the corporate world to devote more resources as the regulations already cover professional and ethical culture,” he said while speaking at the Confederation of Indian Industry’s national conference on corporate frauds in Mumbai. 

“Corporate fraud is listing agnostic and neutral. There have been cases of false disclosures quarter after quarter and incidents of firms jacking up their market cap,” he added. 

Mohanty said that to ensure clearer disclosures, Sebi is making certification and auditing of key performance indicators mandatory and increasing responsibilities and powers to independent directors.