The committee will submit a compressive report on investor issues, annual reports of companies, financial literacy as well as integration of redressal mechanisms of MCA and SEBI
The ministry of corporate affairs (MCA) has set up an experts committee under the chairmanship of Jaydeep N Shah, president of the Institute of Chartered Accountants of India (ICAI), for following up action points on several issues associated with investor education and grievances redressal.
The committee will develop a 20-point summary report for making annual report of companies more meaningful and understandable to common investors. In consultation with the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), the committee will also develop educational material used in financial literacy for schools and common investors.
According to a notification from the MCA, the committee will prepare a background paper for discussion on transparent processes for stakeholders and colour coding of financial products. It will also prepare a road map for integration of redressal mechanisms of MCA and SEBI and evaluate existing grievance redressal module of MCA, so that it can be strengthened.
In order to channelize household savings, the committee will identify the scope and modalities of a study that would be conducted by ICAI.
The committee would also prepare a proposal for evaluation of websites that contain best investor related information.
The Indian Institute of Public Administration has prepared an “Impact Assessment Report” about investor education and awareness. The committee will examine and discuss the report and action points identified in the ICIM events and prepare a compressive road map for effective investor awareness initiatives of the MCA. This will include role and contribution of professional institutes and the trade and business chambers for implementing these initiatives.
Ananta Subramanian, vice president of the Institute of Company Secretaries of India (ICSI) is convenor of the committee, while Rakesh Singh, vice president, ICAI, Arvind Pradhan, secretary general, Indian Merchants Chamber (IMC), NK Jain, secretary, ICAI are other members. Moneylife’s Managing Editor, Sucheta Dalal, is also one of the members of the committee.
The committee will also have one representative each from SEBI and RBI. It will submit its report by 9 August 2012, the MCA said in the notification.