| Hony.
Editor |
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Dr.
Bindi Mehta
(Director,
Research at ICSI - CCRT, Formerly, Chief economist, CRISIL)
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| International
News - Nov, 2003 |
| SEC
frames rules to check inflated profits |
Securities
and Exchange Commission (SEC), US, has
proposed new rules to crack down "pro
forma" profit reports and off balance
sheet dealings. The SEC is also working
to implement provisions of the Sarbanes
- Oxley Act approved in July 2002 by
the Congress in reaction to corporate
and accounting scandals that began last
fall with energy trader Enron and continued
with WorldCom. The pro forma reporting
rules attacks the problem of companies
reporting profit figures that ignore
various costs, departing from nationally
recognised standards known as Generally
Accepted Accounting Principles (GAAP).
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| Investment
banking & research to divorce soon |
The
US Securities & Exchange Commission (SEC) is pursuing a
major shake up of the Wall-street investment research. The settlement
that was expected to take place in the first week of October
will require the large investment banks involved to separate
their investment banking, research and IPO allocation functions
clearly. SEC Chairman, Harvey Pitt may seek a complete divorce
between the banks and their sell side analyst staffs. The SEC,
the New York Stock Exchange and NASDAQ are currently engaged
in investigations of conflict of interest by research analysts
and the allocation of IPO.
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©
2001 Academy of Corporate Governance |
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