SEBI can probe Price Waterhouse role in Satyam scam: HC
By siliconindia   |   Thursday, 26 August 2010, 15:01 IST
Printer Print Email Email
SEBI can probe Price Waterhouse role in Satyam scam: HC
Mumbai: The Bombay high court recently said that the Securities and Exchange Board of India (SEBI) can proceed with its inquiry into the role of audit firm Price Waterhouse in the accounting fraud at Satyam Computer Services, as it has power to take remedial measures in the interest of investors and the securities market. The high court, however, said if it is found that there was omission without any connivance, then on the basis of such evidence, SEBI cannot give any further directions. But if there is evidence, the regulator can proceed by giving directions, the court ruled. Price Waterhouse is likely to file an appeal before the Supreme Court soon. The high court has directed SEBI not to proceed with its inquiry against the audit firm for a period of four weeks. The division bench, comprising Justice PB Majmudar and RM Savant said if SEBI wishes to pass a final order against Price Waterhouse, it will have to determine if it has any power to give directions under the SEBI Act. Price Waterhouse had filed a writ petition before the Bombay high court seeking to quash the showcause notice issued by SEBI, contesting the jurisdiction of the regulator over chartered accountancy firms. Such firms are governed by the Institute of Chartered Accountants of India . Ravi Kadam, advocate general of Maharashtra, supported by Shiraz Rustomjee appeared for SEBI; senior counsel Janak Dwarkadas represented Price Waterhouse. The division bench, comprising chief justice P B Majmudar and justice R M Savant, also said if SEBI wishes to pass a final order against Price Waterhouse, it must first determine whether it has jurisdiction against chartered accountants (CAs).

siliconindia