Mere resignation of an auditor from the company does not absolve him from his responsibility to report suspected fraud. NFRA issues detailed circular on Statutory Auditor’s Responsibilities in relation to Fraud in a Company.
Circular NF – 25013/2/2023, dated 26-6-2023.
Auditor debarred by NFRA for 5 years for non-compliance with Standards on Auditing. Monetary penalty also imposed.
ICAI releases checklist on Standards on Auditing (SAs).
SEBI issues interim order cum – SCN restraining 135 entities from accessing market for alleged stock manipulation.
Press Release PR No. 9/2023, dated 21-6-2023.
Regulation 3 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2009 – Where appellant company issued GDRs which were fully subscribed by ‘V’ and directors of appellant failed to disclose to Stock Exchange material information that ‘V’ took a loan from foreign banker for which appellant provided security in the form of Pledge Agreement, in view of fact that appellant on its own had not indulged into fraudulent activity but activity was imputed to it as Board of Directors and Managing Director had indulged into the same, impugned order passed by SAT affirming findings of violation relating to non-disclosures and reducing penalty to Rs. 5 Cr. was justified.
Farmax India Ltd. v. SEBI – [2023] 150 taxmann.com 401 (SC).
RBI assures accurate accounting and systems in place amid media reports on missing banknotes.
Press Release: 2023-24/428, dated 17-6-2023.