Power of SEBI - Charge of conspiracy and involvement in the ...

SEBI Can Charge CA Firms for Fraud in Statutory Audits; Disciplinary Action Possible for Non-compliance with ICAI Standards.

December 8, 2023

Case Laws     SEBI     AT

Power of SEBI - Charge of conspiracy and involvement in the fraud against CA firm - if the appellant had not carried out the statutory audit as per the accounting standards framed by the ICAI and in the event the appellant could not have resigned without filing the complete audit report or had failed to consider the netting of amount transferred as loans to Action and Avantha then it was open for SEBI to refer to the ICAI to take disciplinary action against the appellant for violation of the accounting standards. SEBI’s role was limited and confined to the conspiracy charge against the appellant with regard to fudging of the accounts of the Company. - AT

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