Fise To Evolve Accounting Norms For Brokers

The Federation of Indian Stock Exchanges (Fise), a trade representative body of different bourses in the country, has constituted a committee to evolve common accounting standards for member brokers.

The decision was taken at the federation's 12th meeting in the city based on a paper prepared by the Bangalore Stock Exchange on prevalent accounting practices.

It may be noted that the latest Sebi inspection report of the Calcutta Stock Exchange (CSE) was highly critical of the accounting practices followed by the bourse. The report maintained that accounting entries made by the CSE was irregular.

Fise chairman P C Shrimal told newsmen on Saturday that the federation would evolve suitable recommendations for standardising accounting practices with the assistance of the Institute of Chartered Accountants of India(ICAI).

 

Fise had also decided to present a detailed suggestion paper to the new government before the presentation of the Union budget for 1998-99, suggesting measures to revive the level of investor confidence in the capital market.

Shrimal said that Fise also considered the problems faced by different bourses in the matter of insurance policy taken by member brokers as well as the difficulties experienced while claiming money from various insurance companies. Further, the Fise has also decided to hold discussions with the insurance companies and evolve a standard policy. In order to increase its strength, Fise had decided to extend invitations to the BSE, NSE, OTC and Madras Stock Exchange(MSE).

It was also decided to make an application to the Sebi for registering Fise as a self-regulatory organisation. On the issue of investor protection, the federation had decided to constitute a panel to look into the matter and study provisions which were currently existing in the developed markets.

Shrimal said that Fise would put forth the views expressed by M R Mayya, former executive director of BSE, regarding revival of the primary market before Sebi and the ministry of finance.