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HC reserves order on plea by audit firm
August, 12th 2010

The Bombay High Court on Wednesday reserved orders on a petition filed by PricewaterhouseCoopers (PWC) challenging the action initiated by Security and Exchange Board of India (SEBI) against them following Satyam Computers accounting scam. On June 30, 2009, SEBI, one of the several regulatory agencies probing the Rs 7,136 crore fraud at Satyam Computer Services Ltd, had issued notice seeking to restrain PWC from auditing any listed firms connected with Satyam for a certain period.

The market regulator had stated in its notice that PWC had failed to be vigilant in the conduct of their professional duties, and had displayed "gross negligence" in the conduct of their audits of Satyam from March 2001 to September 2008.

PWC has moved the high court challenging the notice contending SEBI had no jurisdiction to issue such a notice to it.

 
 
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