PriceWaterhouseCoopers Banned By Sebi For 2 Years, Says Willing To Fight

PriceWaterhouseCoopers and its network of auditors have been banned by securities and exchange board of India(Sebi) from auditing any firms or brokers registered with the Sebi for two years

pricewaterhousecoopers-launches-bitcoin-and-.max-800x800

PriceWaterhouseCoopers and its network of auditors have been banned by securities and exchange board of India(Sebi) from auditing any firms or brokers registered with the Sebi for two years. This order by Sebi is passed under Prevention of Fraudulent and Unfair Trade Practices (PFUTP) regulations and Section 11 of Sebi Act.

It also found the firm to be involved in the unscrupulous activities which made investors lose their money. While PwC denies any wrongdoing and claims that this order is not in the line with Bombay high court order of 2010. They believe that they were not involved in any fraudulent activity and the case is a thing of past and they have learned their lessons.

They said that they will employ their all legal remedies possible, to nullify the order issued by the SEBI. While it remains to be seen the effectiveness of the order, it is amply clear that they have found themselves in the tough position. But as the media reports suggest that this may not be something new for the auditing company, which operates in the many countries and has established itself as the reputed brand in the auditing. The future looks confusing for the company, though.

The History Of Satyam Computers

Satyam computers scam is considered as one of the biggest scams in the country. The scam shook the entire securities markets and brought stock markets to its knees. Sebi became aware of the fraud when the owner of the Satyam computer, Mr. Ramalinga Raju confessed to inflating profits and revenues for years, to maintain its growth in the stock market.
It was discovered in the year 2009 when Raju decided to bring his revelations to the public and the Sebi. The inquiry under the Sebi has been going on for nearly a decade and in between Raju was convicted and subsequently released on bail.
The auditors of the PriceWaterhouse Coopers were also convicted in the case of Satyam on the charges of misrepresentation of the financial assets, as well as accounts of the Company. Since then the committee at Sebi has been examining the case against the Pricewaterhouse Coopers. First PwC claimed in a tribunal that Sebi, being the market regulator has no right to issue show cause notice. The tribunal rejected its plea. Bombay high court granted them a chance of offering more time for cross-examinations in front of Sebi.

The Future Ahead

TechMahindra merged with the Satyam computers and gave a new life to the company. But what it could not write off is its history. The order passed by Sebi sends a strong signal to all the companies and firms, who indulge in fraudulent activities to pursue profit and growth. We are yet to see the response of the auditing firm which has strongly claimed that it did not do any wrong. The International reputation of brand took a hit with the order and how this pans out for the company is in the hands of the court, if they decide to pursue this matter, which they will.

Loading...

LEAVE A REPLY