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SEBI to hear PwC case in Satyam scam
March, 29th 2010

SEBI is again taking up for hearing the case relating to the role of audit firm PriceWaterhouse in the multi-core Satyam fraud.

This follows the rejection by SEBI of the audit firm's application for a consent settlement earlier this month, a source said.

Under the consent settlement, the regulator settles the case on certain terms, including payment of penalty by the accused.

A spokesman for the audit firm confirmed that it received intimation from SEBI on the hearing of the case.

However, he said the firm has re-applied for the consent settlement after the first application was rejected. Unless, the terms are improved SEBI may not reconsider the review application, the source said.

SEBI had issued a show-cause notice to Satyam last year under Fraudulent and Unfair Trade Practices regulations. Partners of its Hyderabad arm of the audit firm, which audited the books of Satyam, were allegedly involved in falsification of accounts of Satyam Computer. The hearing of the case pertains to the show-cause notice.

If the show-cause notice is established, the audit firm may face a restraint order from SEBI.

 
 
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