Panel on early spotting of accounting scam by cos held 1st meet Mon - ICAI
This story was originally published at 18:02 IST on 27 June 2025
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NEW DELHI – A high-powered group set up recently by the Institute of Chartered Accountants of India under Securities and Exchange Board of India's chairman Tuhin Kanta Pandey's prodding to research and give recommendations on detection of early warning signs on accounting fraud or scam at listed companies held its first meeting on Monday, the institute's president Charanjot Singh Nanda said Friday in a media conference on global capability centres in New Delhi. The meeting was held virtually with around 18 members participating, Nanda told Informist.
The group currently comprises ICAI member experts from India and world over, and representatives of SEBI, BSE Ltd. and National Stock Exchange of India, according to the institute's president. Nanda had told Informist that a couple of days ago he met a deputy governor and an executive director from the Reserve Bank of India, and "may be they will also give their representative" for the group.
The high-powered panel has been asked to detail indicators of potential financial or accounting scam building up in a listed company. The core idea behind the formation of the group is that regulators of listed companies such as SEBI and stock exchanges can step in immediately the moment they see signs of something fishy in the accounts and financial statements.
The ICAI president said a timeframe "cannot be given" for the group's final recommendations to be submitted to SEBI since "it is a very intellectual thing...and something which is very unique of India." This is in contrast with his earlier statement in a media conference on Jun. 18 when he said the group would be ready with its recommendations "very soon".
According to ICAI officials, it is no easy task to identify an accounting fraud or scam as it is occurring. No country in the world has done such an exercise, Nanda said.
In the previous media conference on Jun. 18, Nanda had said he and an ICAI delegation had met SEBI chairman Pandey early May in Mumbai. The SEBI chief had "insisted we make a group" that will help front line regulators in spotting early signs of fraud or scam in a listed companies' accounts and financial statements, according to the ICAI President. End
Reported by Rajesh Gajra
Edited by Akul Nishant Akhoury
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