New Delhi, Oct. 1: India needs to provide attractive financial returns to telecom companies and incorporate transparency and ethics if it wants to become a favoured destination for foreign investors.
A presentation made by PricewaterhouseCoopers at the telecom summit organised by Ficci on September 25 and 26 said fresh foreign investment could be achieved through “strict compliance” with new global rules and “comprehensive reporting”.
The presentation suggests that telecom companies should voluntarily comply with the provisions of the Sarbanes-Oxley Act, which envisages establishment of a public company accounting oversight board. It also permits executive compensation and related governance reforms.
Moreover, the Act asks that CEOs and CFOs attest reviews of annual and quarterly financial information. It also seeks responsibility for adequacy and effectiveness of internal controls as well as auditor attestations and reporting on internal controls.
PwC suggests there should be a whistleblower protection provision built into company processes in order to analyse conflict of interest rules, accelerate reporting of insider transactions, help trading blackouts and preservation of documents.
PwC also proposed a three-tier model for corporate transparency.