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Independent audit committees must
for US listing
Mumbai: The NYSE and Nasdaq have made it compulsory for Indian companies aspiring
to ils there, to set up audit committees consisting of at least three independent
directors. Companies, which have list on the two exchanges before December 14, 1999 have
been given a grace period upto June 14 next year to comply with the order.
The guidelines also state that the audit committee members must be independent directors
and financially literate, i.e. be able to read and understand fundamental financial
statements. And at least one member must have past accounting or related financial
management expertise, such as past employment experience with requisite professional
certification.
Recently, the Indian Companies Bill, 1999,
which is to come up for discussion in the Parliament in the monsoon session, also proposes
setting up of audit committees. It states that two-thirds of the total number of members
of the audit committee shall be directors, other than managing or whole time directors.
However, the audit committee requirements under the Indian act are much less onerous than
those prescribed by the US stock exchanges.
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Non-technology stocks prop up sensex
Mumbai: Old economy and non-technology blue chips played
an active role in lending support to the market. A rise in stocks such as Hindustan
Petroleum Corporation, Tata Iron and Steel, ICICI and ITC lent support to key share
indexes.
The Bombay Stock Exchange (BSE) Sensex
closed at 4898.07, up 30.64 points, or 0.63 per cent, from its close on Monday. The
National Stock Exchange (NSE) S&P CNX Nifty provisionally closed at 1518.45, up 8.80
points, or 0.58 per cent, from its close on Monday.
This reason for this shift was the perception
that these stocks were attractive, due to them having limited downside potential but
strong upside potential. As a result, many funds are said to have shifted portfolios to
increase their exposure to these good non-technology stocks.
In the absence of leads, the key share
indexes are expected to be range-bound at least for the next two-to-three weeks in the
absence of leads.
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