"Sebi will have to change its listing agreement norms for India Inc to adopt International Financial Reporting system (IFRS)," ICAI Accounting Standard Board Chairman Amarjit Chopra said.

He said there is difference of approach in Sebi and National Advisory Committee on Accounting Standards (NACAS) in preparing financial statements as per accounting standards.

While Sebi asks the companies to prepare financial statements as per the accounting standards issued by the Indian Institute of Chartered Accountants (ICAI), NACAS is of the view that only those standards should be followed which have been notified by the Government.

NACAS is a body under the Ministry of Corporate Affairs, which studies accounting standards issued by ICAI and sends them to the Government for approval.

The latest accounting standards issued by ICAI on financial instruments like derivatives are yet to be notified by the government.

Chopra said ICAI also wants the government to revise the threshold limit defining a public-interest entity, for which it is mandatory to adopt IFRS.