Prime Minister Manmohan Singh on Tuesday cautioned corporate India that it will fail to compete without a worldwide recognition for good corporate governance, which he regretted is not getting adequate attention in the public discourse.
Describing the chartered accountants as 'the watchdogs of new corporate world', he said, 'the dynamism of globalised capital market and emergence of knowledge based economy has posed major challenges to accurate and speedy financial reporting.'
Pointing out that corporate governance was not getting adequate attention in public discourse on governance, Singh said, "in the era of protectionism few bothered about corporate governance and transparency in accounting and management. Such laxity is no longer possible...Shareholder democracy has come to stay..."
Addressing a diamond jubilee celebrations of Institute of Chartered Accountants of India, he said role of the accounting profession is also critical in lending credibility to the financial markets.
"Market participants, investors and shareholders look to you (chartered accountants) for high quality information, which ensures market discipline and foster confidence of various stakeholders," he added.
The prime minister also asked chartered accountants to expand their operations overseas to seek global challenges and opportunities.
He also highlighted the need of proper accounting system for funds received and spent by panchayat institutions.
