MCA to review SEBI´s PW order

MCA to review SEBI´s PW order

The corporate affairs ministry (MCA) will examine markets regulator Securities and Exchange Board of India´s (Sebi´s) order against audit major Price Waterhouse in the Satyam Computer Services case, Union MinisterPPChaudhary said on Thursday.

On Wednesday, Sebi barred Price Waterhouse´s network entities from issuing audit certificates to any listed firm in India for two years after finding the audit major guilty in the multicrore Satyam scam.

Besides, the regulator has directed disgorgement of over Rs 130 million wrongful gains by the audit major and its two erstwhile partners who worked on the IT major´s accounts.

When asked about Sebi´s order against Price Waterhouse and whether the ministry would be looking at having stricter norms for auditors in the wake of that order, Chaudhary said, “We will examine it.” “There are already stringent norms and the only question is about execution,” he said in response to a query on whether there are plans to have stricter norms in place for auditors.

Sebi has imposed a two year ban on entities/ firms practicing as chartered accountants in India under the brand and banner of PW from directly or indirectly issuing any certificate of audit of listed companies, compliance of obligations of listed companies and intermediaries registered with the regulator.

Sebi noted that the order would not impact audit assignments relating to the financial year 201718 undertaken by the firms forming part of the PW network.

Besides, Price Waterhouse Bangalore and its two erstwhile partners —SGopalakrishnan and Srinivas Talluri— have been directed to jointly and severally disgorge the wrongful gains of “Rs 13,09,01,664 with interest calculated at the rate of 12 per cent per annum from January 7, 2009, till the date of payment.”

The Business Standard, New Delhi, 12th January 2018