The Hindu Business Line : LS Speaker for better accounting standards

THE effective functioning of the Indian capital markets depends on the investor's trust in the system. "And the inflows into the capital market can be attracted only when the investors have adequate confidence in the related processes," the Speaker of the Lok Sabha, Mr Somnath Chatterjee, said. For this purpose, transparency has to be maintained in the working of all players of the market and other stakeholders.

Inaugurating the All Kerala Chartered Accountants Association, Mr Chatterjee said: "With more and more private enterprises coming up and also in the wake of the structural changes taking place in our economy, the money spent by the private limited companies can also be deemed to be public money, that is, the money of the shareholder - the common man on the street. In this context the role of the ICAI as a regulatory body in the private sector can in no way be considered less important than that of the institution of the Comptroller and Auditor General in the public sector, which keeps a strict and unremitting vigil over the manner in which public money is spent."

The challenge before the Chartered Accountants is to constantly meet the public demands for quality information and also for better disclosures on all financial transactions in the capital market. "The higher the quality and integrity maintained by you in your role as key providers and verifiers of information, the stronger and more resilient will be the capital market and the economy," Mr Chatterjee said.

He pointed out that it was the responsibility of the Chartered Accountant to the common man, for it is he who will be deprived of socially useful investments when the revenue flow is reduced.

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