Pandey has tackled an ICAI event here and said that the “collective capacity” to anticipate risks and early detection of anomalies will determine the future of financial governance.
“Forensic accounting may not only be treated if a post-fraud tool is treated. Instead, evolving into a proactive discipline is embedded in the structure of business checks,” he added.
He said that the regulator of the capital markets “consistently demonstrated” to strengthen market integrity, improve disclosure standards and use technology to discover complex financial fraud, but added that only regulations in this aspect are not sufficient.
There is a need for the regulator’s efforts to be supported by collective wisdom and coordination of all stakeholders, he said, adding that competence, vigilance and professional integrity are very important aspects to tackle fraud.
Pandey said that Sebi is completely ready to start an aggressive systemic campaign against fraud soon, pointing out that it already makes some efforts, together with market infrastructure institutions. It is necessary to protect the system against fraud because investors growing appetite in the market is once powered by the transparent and governances, property. And all stakeholders asked to give an introspect on what is best for the markets while taking actions.
Technology can play an important role in spotting fraud, he said, adding that Sebi has also developed its own supervision technology, which is used by fairs.
A technological tool can determine fraudulent patterns, but it will take a human spirit to be too contextualization and to expose fraud, he added.
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