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
proposed that the norms applicable for the constitution
of the board of directors of parent companies should also
be applicable to subsidiaries.
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.
Sebi committee rejected an earlier suggestion that a company
should not have more than one subsidiary investment company.
line with the increased disclosure norms for corporates,
also recommended mandatory consolidated accounts on a