Page 73 - Quick Insights Book 2022

Chap. 19 – Securities and Exchange Board of India (SEBI)

ending on June 30, 2003, SEBI has made an amendment to Entrepreneurial Role: Chartered Accountant from the traditional
Clause 41 of the Listing Agreement, and made it mandatory for practice have moved into being intermediaries in the capital
all listed companies (including commercial banks) and for all market themselves. New Investment banking firms, broking
entities whose accounts are to be consolidated with the listed entities and the Regulatory environment has encouraged
entity to get their quarterly results subjected to “limited review” professionals to be an entrepreneur by themselves. With
by the auditors of the company (or by a Chartered Accountant the better understanding of the financial products, Chartered
in the case of public sector undertakings) and a copy of Review Accountants have become effective entrepreneurs in wealth
Report is required to be submitted to the Stock Exchange within distribution, wealth management etc.
two months after the close of the quarter.
Supporting services: More and more service providers
FINANCIAL AND CAPITAL MARKETS like investment bankers and insurance agencies rely on the
reporting and certifications from the Chartered Accountant in
Financial Services is concerned with design and delivery of discharging their obligations.
advice and financial products to individuals and businesses. Emerging employment role: Equity sales, research, portfolio
Economy has largely moved from capital intensive to knowledge management, media tracker, career in financial advertising
driven spectrum. In a typical capital market scenario of the and televisions, global outsourcing partners are the emerging
financial services sector, Intermediaries, Investors, Issuers, employment opportunities for a young chartered accountant
Corporate and Regulatory Authority rely largely on skills of along with their interest in taxation, audit and controls.
the Chartered Accountants in discharging their respective
obligations to the investors. The entire field of Financial Emerging practice role: The whole approach towards risk
Services has opened up new avenues for the Chartered managements, controls changed with the opening up of the
Accountants to excel in. Financial analyst, media expert economy. Managements are increasingly providing a better
covering the capital markets, financial advertisement, investment budget for risk management and Chartered Accountant plays an
advisor, financial services marketing are some of the emerging important role as Chief Risk Officer, or Chief Internal Control.
avenues for the Chartered Accountants to deploy their skills Knowledge of accounts, accounting finance and financial
effectively. analysis and law pertaining to issue of securities with regard
to provisions of the Companies Act, Securities Contracts Act,
CAPITAL MARKET SEBI and RBI also help in achieving excellence in execution. In
addition, knowledge of the client or the Issuers business helps
Keeping in view the complications and stiff pulls and pressures in profiling and positioning of the business to the outside world
of burgeoning capital markets in India, the skills and expertise at large. This is the key ingredient to any fund raising plan. As
of trained Chartered Accountants are highly relied upon by an Advisor and Investment Banker, a Chartered Accountant
the financial services sector, intermediaries, investors, issuers, also helps in formulating financial strategy to successfully tap
corporates and even the Regulatory Authority concerned. And the capital markets and ensure success for the fund raising
now more opportunities await the professionals in the area. plan. Putting together an efficient capital structure, creating
Chartered Accountants play the following roles in the Capital financial model, profiling business promoters and management
Market:
and advising on valuation are the other key ingredients for
Advisory role: The advisory role has evolved from being an successful entry into capital market.
advisor on tax and related matters to positioning the company Chartered Accountants can certainly help in all the above
amongst the knowledgeable investors, advising the company on operations and can act as sounding boards to accomplish
the value chain which they need to pursue etc, and continued this. Chartered Accountants can work as a regulator either for
feedback on the key acts which the Company must do to Stock Exchange or SEBI. As a regulator, chartered accountants
sustain its valuation, attract quality investors interest etc.
can be skillfully employed in policymaking, monitoring review,
Audit role: Increasing number of instances of fraud and surveillance and investigation.
corrupt practices in public companies, has resulted not only Role in the IPO Process: To comply with the public issue
in depletion of investor’s wealth, but also resulted in loss of disclosure norms, SEBI specifies with the issuer company,
investor’s confidence. As a regulator of public investments and states and restates financial statements for the last five years
finance, SEBI is entrusted with the responsibility to ensure that of the company going public and Chartered Accountant must
the public companies do not defraud and abscond investor’s certify all figures and give a comfort letter to the Lead Manager.
wealth. By means of limited reviews, disclosures requirements
and audits, the regulators of companies ensure safety of Undertaking Due Diligence: Initial public offerings (IPO) are
investor’s wealth. Independent Directors on the Board of the often considered to be the ultimate goal for any entrepreneurial
Company demands a whole lot of quality inputs to discharge venture. An IPO is offering stock to the public on an open
their responsibilities effectively. This has tremendously increased market for the first time. Once a company decides to go
the focus on the quality of the audit, approach etc. public, it needs to pick its IPO team, consisting of the lead

60 Quick Insights on Professional Opportunities for Chartered Accountants