Firms to reveal investments in subsidiaries
By Our Markets Bureau | 24 Aug 2002
Mumbai: The Accounting Standards Committee of the Securities and Exchange Board of India (Sebi) has suggested that companies must disclose in their annual accounts the details of amounts of loans given to and investment made in their subsidiaries.
Sebi proposed that the norms applicable for the constitution of the board of directors of parent companies should also be applicable to subsidiaries.
At least one-third of the directors of the subsidiary company should be non-executive directors of the parent company. The audit committee of the parent shall also review accounts of the subsidiary.
The Sebi committee rejected an earlier suggestion that a company should not have more than one subsidiary investment company.
In
line with the increased disclosure norms for corporates,
the committee
also recommended mandatory consolidated accounts on a
half-yearly basis.
