"With the introduction of derivatives and other financial instruments in the market, there is need for separate accounting policy for these instruments," Sebi chairman DR Mehta said here on Thursday at the golden jubilee function of the Institute of Chartered Accountants of india (ICAI). With the globalisation of the Indian economy, the country's accounting policy should be made compatible with international accounting standards, Mehta said.

The Sebi chairman said the market regulator has been continuously interacting with the ICAI in order to improve accounting standards. "The "Sebi-appointed Malegam committee on disclosure norms has also been successful in improving transparency in companies' financial statements," he said. Mehta said that with the active use of technology in thebusiness, there is also need for systems audit, where auditing of companies' system technology is required. Mehta said that in the age of transparency, there is need for consumer protection and enhancing investor confidence in the market.

"Consumer's choice would be supreme in the next millennium and would require advice from professionals for their investments," he said.

In this regard, Mehta said the role of chartered accountants and other professionals is very important. He said apart from role of professionals in investment advisory, accountability of companies, their management and promoters is also important. In order to provide transparency and improve corporate governance, Sebi has appointed a committee under chairmanship of industrialist Kumar Mangalam Birla, Mehta said.

"This committee will give its recommendations on listing requirements by companies to improve corporate governance," he said.Other members of the committee include members of ICAI, Institute of Company Secretaries of India(ICSI), Sebi officials and professionals from the corporate sector.