MUMBAI: The Securities Appellate Tribunal (SAT) on Friday refused to grant a stay on the two-year Sebi ban on audit main Price Waterhouse (PW) to adopt new shoppers. On January 10, the markets watchdog Sebi had banned the auditor for its alleged complicity in the multi-crore Satyam scam.
Posting the matter for further listening to on February 13, SAT, however, nowadays clarified that the audit main and its networking entities can continue serving its present shoppers.
On discovering it guilty in the Satyam fraud, Sebi had handed an order on January 10, restraining PW and its community entities from issuing audit certificate to any listed corporate in the country for 2 years. Subsequently, PW and its community firms moved the tribunal towards the Sebi order.
At the listening to nowadays, SAT refused to stick the ban, announcing it will hear the matter next on February 13. However, the two-member SAT bench observed that the Sebi order "shall not come in the way of audit assignments undertaken by PW and it network firms for fiscal 2017-18".
The tribunal also clarified that audit assignments already undertaken by PW for shoppers who practice the financial yr starting on January 1, 2018 would no longer be impacted by the Sebi order.
"Similarly PW shall be at liberty to complete any other work of certification (besides audit) already in their hands," SAT said.
However, it said PW and its community firms "shall not take new assignments and new clients" including that the audit firm has to publish an inventory of its present shoppers ahead of the tribunal as well as a copy of the same to Sebi.
In a 108-page order Sebi had also directed disgorgement of over Rs 13 crore wrongful beneficial properties by the auditing main and its two erstwhile companions who worked on the IT corporate's accounts.
On January 11, PW said there had been no intentional wrongdoings by its firms and companions in the Satyam case and had expressed self assurance of getting a stay on the Sebi order.
Sebi has imposed a two-year ban on entities/ firms practising as chartered accountants beneath the brand and banner of PW from without delay or indirectly issuing any certificates of audit of listed corporations, compliance of obligations of listed corporations and intermediaries registered with the regulator.
Sebi had famous that its order would no longer affect audit assignments with regards to the financial yr 2017-18 undertaken by the firms forming a part of the PW community.
Further, the two erstwhile companions, S Gopalakrishnan and Srinivas Talluri, were restrained from without delay or indirectly issuing any certificates of audit of listed corporations, compliance of obligations of listed corporations and intermediaries registered with Sebi for 3 years.
The scam came to mild in January 2009 after Satyam Computer's then chairman B Ramalinga Raju admitted to huge scale financial manipulations in the corporate's books of accounts.
Posting the matter for further listening to on February 13, SAT, however, nowadays clarified that the audit main and its networking entities can continue serving its present shoppers.
On discovering it guilty in the Satyam fraud, Sebi had handed an order on January 10, restraining PW and its community entities from issuing audit certificate to any listed corporate in the country for 2 years. Subsequently, PW and its community firms moved the tribunal towards the Sebi order.
At the listening to nowadays, SAT refused to stick the ban, announcing it will hear the matter next on February 13. However, the two-member SAT bench observed that the Sebi order "shall not come in the way of audit assignments undertaken by PW and it network firms for fiscal 2017-18".
The tribunal also clarified that audit assignments already undertaken by PW for shoppers who practice the financial yr starting on January 1, 2018 would no longer be impacted by the Sebi order.
"Similarly PW shall be at liberty to complete any other work of certification (besides audit) already in their hands," SAT said.
However, it said PW and its community firms "shall not take new assignments and new clients" including that the audit firm has to publish an inventory of its present shoppers ahead of the tribunal as well as a copy of the same to Sebi.
In a 108-page order Sebi had also directed disgorgement of over Rs 13 crore wrongful beneficial properties by the auditing main and its two erstwhile companions who worked on the IT corporate's accounts.
On January 11, PW said there had been no intentional wrongdoings by its firms and companions in the Satyam case and had expressed self assurance of getting a stay on the Sebi order.
Sebi has imposed a two-year ban on entities/ firms practising as chartered accountants beneath the brand and banner of PW from without delay or indirectly issuing any certificates of audit of listed corporations, compliance of obligations of listed corporations and intermediaries registered with the regulator.
Sebi had famous that its order would no longer affect audit assignments with regards to the financial yr 2017-18 undertaken by the firms forming a part of the PW community.
Further, the two erstwhile companions, S Gopalakrishnan and Srinivas Talluri, were restrained from without delay or indirectly issuing any certificates of audit of listed corporations, compliance of obligations of listed corporations and intermediaries registered with Sebi for 3 years.
The scam came to mild in January 2009 after Satyam Computer's then chairman B Ramalinga Raju admitted to huge scale financial manipulations in the corporate's books of accounts.
SAT refuses to stay Sebi ban on Price Waterhouse
![SAT refuses to stay Sebi ban on Price Waterhouse]()
Reviewed by Kailash
on
January 21, 2018
Rating:
