Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ACCOUNTING STANDARD :: due date for vat payment :: empanelment :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT Audit :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT RATES
« News Headlines »
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout

`ICAI must take action on Karvy's auditor'
December, 02nd 2006

The Standing Committee on Finance has said that the Institute of Chartered Accountants of India (ICAI) must take stringent action against Haribhakti & Co, the internal auditor of Karvy, for failing to check or report the opening of multiple depository accounts with same address.

In its report on the recent IPO scam, the committee noted that SEBI had in its interim order of April 2006 highlighted that the agents of Karvy Stock Broking Ltd (depository participant) opened most depository accounts having same addresses.

"These agents had no legal sanction. This was never checked or reported either by the internal auditors (Haribhakti & Co) of Karvy or by external inspection teams of NSDL," the report tabled in Parliament said.

Flouting KYC norms

The committee also said that banks found involved in irregularities in IPOs must promptly initiate criminal proceedings against employees who were involved in flouting of know your customer (KYC) norms.

"Merely causing `regulator discomfort' to the `scamster' banks do not convey necessary message to the individuals who are the real culprits. A clear cut, strong and prompt punishment must be provided for in the system itself so that the fear of `personal punishment' is there," the committee report said.

The Reserve Bank of India had sought to assure the committee that regulatory discomfort, in addition to the penalties, would be imposed on the banks involved in the IPO scam.

"However, the committee strongly feels that the transgression from the guidelines/instructions of the RBI has not taken place without the connivance of officials of the banks, who were found responsible for the irregularities in flouting KYC norms," it has said.

It also recommended that the RBI should periodically monitor the stipulated exposure of banks to the capital market.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions