Disclosure of audited accounts by listed companies every six months would increase transparency and enhance confidence of foreign investors, said experts while commenting on a Securities and Exchange Board of India's discussion paper on listing agreement.
"It (disclosure of audited accounts twice a year) will instill confidence of the FIIs, increase transparency and also strengthen corporate governance norms," said Jagannadham Thunuguntla, equity head, SMC Capital.
To prevent Satyam-like frauds and disclosing the solvency status of listed companies more frequently, the Sebi Committee on Disclosures and Accounting Standards has suggested that listed companies be mandated to disclose audited statements on half-yearly basis.
"The audited figures of the major heads of balance sheet prepared in accordance with...the Companies Act or its equivalent in other statutes may be disclosed by listed entities on a half-yearly basis," Sebi said in the discussion paper, on which it invited comments from public by September 25.Commenting on the proposal, Dholphy D'souza, national leader for IFRS Services, Ernst and Young, said: "It is a very positive proposal. It will make things more transparent. It is good if people come to know more about a company."
Image: Bombay Stock Exchange
