The Institute of Chartered Accountants of India (ICAI) has opposed the capital markets watchdog Sebi's proposal to categorize chartered accountants (CAs) as fiduciaries in the securities market, claiming there is no specific statutory provision under the Sebi Act to take action against auditors of listed companies.
The chartered accountants' body, with its over 2.7 lakh members, has opposed the regulator's proposal to categorize CAs as fiduciaries along with other professionals.
The Securities and Exchange Board of India (Sebi), had in July, issued a consultative paper on the proposed Sebi (Fiduciaries in the Securities Market) (Amendment) Regulations for public consultations.
In response to this, ICAI President Naveen ND Gupta, in his latest message to the members, said the proposal is beyond Sebi’s powers.
"... there is no specific statutory provision under the Sebi Act conferring powers on Sebi to take action against auditors of listed companies," Gupta said.
Further, the newsletter contended that North Carolina’s apex court had passed a verdict stating that auditors/accountants are not part of fiduciaries.
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