Price Waterhouse can audit clients till March 2019 - SAT
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The Securities Appellate Tribunal (SAT) granted partial relief to Price Waterhouse (PW), allowing it to audit existing clients till March 31, 2019, or until a new bench is formed.
PW had been barred by the Securities and Exchange Board of India (Sebi) from auditing listed companies in India for two years over its alleged collusion with directors and employees of erstwhile Satyam Computer ServicesBSE 0.00 % in the country’s biggest corporate accounting scandal. Sebi had said PW could only service existing clients until March 31, 2018, in its January order. The tribunal, which hears appeals against orders passed by Sebi against market entities, on Thursday extended the deadline by a year or until a new SAT bench is formed, whichever is earlier.
Presiding officer Justice JP Devadhar has recused himself from the case. SAT member Jog Singh will demit office on February 19, leaving only one member, CKG Nair, to hear pleas.
At least two members are required, according to the rules. Senior lawyer Mukul Rohatgi, who appeared for PW, sought a stay on Sebi’s two-year ban on 10 PW network entities, saying they were independent with separate financial statements from PW Bangalore. PW Bangalore was the auditor for Satyam Computer Services.
However, Sebi counsel Ravi Kadam said PW has to be considered a brand and investors go by this, hence these network entities cannot claim to be independent.
The tribunal addressed the question of the speed with which the case can be heard, saying it was constrained by the fact that the bench would be down to one soon. #casansaar (Source - PTI, Economic Times)
PW had been barred by the Securities and Exchange Board of India (Sebi) from auditing listed companies in India for two years over its alleged collusion with directors and employees of erstwhile Satyam Computer ServicesBSE 0.00 % in the country’s biggest corporate accounting scandal. Sebi had said PW could only service existing clients until March 31, 2018, in its January order. The tribunal, which hears appeals against orders passed by Sebi against market entities, on Thursday extended the deadline by a year or until a new SAT bench is formed, whichever is earlier.
Presiding officer Justice JP Devadhar has recused himself from the case. SAT member Jog Singh will demit office on February 19, leaving only one member, CKG Nair, to hear pleas.
At least two members are required, according to the rules. Senior lawyer Mukul Rohatgi, who appeared for PW, sought a stay on Sebi’s two-year ban on 10 PW network entities, saying they were independent with separate financial statements from PW Bangalore. PW Bangalore was the auditor for Satyam Computer Services.
However, Sebi counsel Ravi Kadam said PW has to be considered a brand and investors go by this, hence these network entities cannot claim to be independent.
The tribunal addressed the question of the speed with which the case can be heard, saying it was constrained by the fact that the bench would be down to one soon. #casansaar (Source - PTI, Economic Times)
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