The government on Saturday asked the Institute of Chartered Accountants of India to ensure that accounting professionals strictly adhere to stipulated standards in order to avoid Enron-like cases in India.

"In a weak monitoring system, there could be several Enrons waiting to happen. An Enron can affect the man on the street, who has no idea about accounting standards," Company Affairs Minister Prem Chand Gupta said after inaugurating the National Accounting Convention.

Gupta said the implementation of accounting standards is important and should be closely monitored by the ICAI for its application in the right spirit.

"Accounting standards, on their own, may not be able to satisfy the huge expectations of the society in relation to reliable, credible and transparent financial statements," he said emphasising on tighter monitoring.

The Minister lauded the efforts spearheaded by the ICAI to update and upgrade the accounting standards in India to global standards.

"So far, 29 Indian accounting standards have been issued by the institute and with the issuance of new Indian Accounting Standards in the last few years, the country's accounting practices have come almost at par with the International Financial Reporting Standards," he said.

Gupta said the National Advisory Committee on Accounting Standards, which has been interacting closely with ICAI's Accounting Standards Board, has recommended standards 1 to 27 (except AS 8 and revised AS 11) for government notification.

"The matter is under examination by the ministry and the notification of these accounting standards is likely to be issued shortly," he said.

The minister said efforts were also being made to simplify the existing Companies Act and the government would come out with a concept paper on its revision on Wednesday.

"The concept paper will be released to simplify the Act to bring more transparency and ensure investors' protection.

Two-third of the about 800 provisions in the 1956 Act are redundant and have no relevance whatsoever," he said.

He said the government would invite suggestions from industry chambers like CII, FICCI, ASSOCHAM as well as the apex bodies of Chartered Accountants and Companies Secretaries on the paper.

"In my view, the Companies Act is the oldest and the longest Act of democratic India which needs to be reviewed and tuned to present day realities," he said.

"I am in constant touch with Law minister H R Bharadwaj for reviewing the Companies Act," Gupta said.