ERRANT CAs, CS MAY FACE DISGORGEMENT

New Delhi, April 8: Chartered accountants, company secretaries, cost accountants and valuers may have to forfeit their fees and face penalties if they are found lacking in their dealings with listed firms, according to a new set of norms being considered by Sebi.

The role of auditors and valuers has come under the scanner in a number of high- profile cases recently involving PNB, WhatsApp and Fortis as also the Satyam and Kingfisher frauds earlier.

Sebi is looking to enhance the oversight to check such frauds with new regulations for fiduciaries in the securities markets, a senior official said.

It will require additional disclosure requirements and greater scrutiny of financial statements by auditors and other third party entities, he said.

Sebi may finalise rules which will put the responsibility on chartered accountants, company secretaries, cost accountants, valuers and monitoring agencies to get firms to comply with securities regulations and act in the interests of shareholders, he added.

If such entities are found lacking in their dealings, Sebi may disgorge the wrongful gains, including the fee earned, along with an interest of 12 per cent per annum from the date of default. Besides, Sebi may ask them not to directly or indirectly issue any certificate or report.