The Sebi Committee on Disclosures and Accounting Standards (SCODA) has suggested that person who possesses “experience in financial or accounting or any other comparable experience or background which results in the individual financial sophistication” can be appointed as CFO of a listed firm.
The Sebi board held the view that CFOs of listed companies should be chartered accountants and asked the SCODA to explore the possibility of prescribing a professional qualification for such functionaries.
It also proposed that the partners of the audit firm signing the audited accounts of any listed entity may be rotated every five years.