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In January, Sebi banned Price Waterhouse from auditing listed companies in India for two years.
Mumbai: The Financial Market Regulatory Authority proposed amendments to strengthen the laws governing auditors and other third parties engaged by listed companies. audit of financial results, among other things. The Kotak Committee, formed to present proposals to improve corporate governance, recommended last year that the Securities and Exchange Board of India (Sebi) has specific powers to act against auditors and other third parties.
Failure to audit resulted in several frauds going unnoticed for years and the capital market regulator did not have direct control over the audit firms.
Sebi proposed to give the board of directors of the company The proposed changes occur several months after the National Bank of Punjab, India's second largest lender of state , stunned the markets after discovering US $ 2.
Business bankers, credit rating agencies, custodians, among others, registered and regulated by Sebi, but chartered accountants, business secretaries, appraisers and supervisory agencies do not no direct regulator.
The amendments would mean that the auditors must ensure that the certificates or reports issued are true in all material respects. exercise due care, skill and diligence in all reporting and certificate processes.
Auditors would be required to report in writing to the listed company's or compliance officer's audit committee In 1965, Sebi prohibited Price Waterhouse from screening listed companies in India for two years after a case investigation. of accounting fraud of about ten years in a software services company became the biggest corporate scandal in India. 19659003] Sebi asked for comments and comments on the proposed regulations over the next 30 days.
© Thomson Reuters 2018
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