SEBI offers:In 2017, the Kotak Committee, organized for improving the corporate governance sector, said that SEBI has been given the right to act against auditors and other third party persons or firms with statutory duties under the Securities Act.
As a result of interval in many firms, various frauds have been unknown for many years and during the scenario, SEBI did not control the audit units.
Market regulator has proposed that the board of directors of the company take the front seat and check against the firm or the person if they violate any rule or submit false reports or certificates.
After $ 2 billion loan fraud on state-run PNB, the proposal was left unaware for many years.
There is no direct regulator to supervise the functioning of various professionals including CAS, CS, monitoring agencies and Valorus. Still, other institutions such as credit rating agencies, merchant bankers, custodian etc. are regularly registered under the framework of SEBI.
Through the new listed amendments, the auditors should ensure that the certificates and reports issued by them are correct and they need to be careful and cautious.
In addition, for the draft of the new rules, SEBI has asked for feedback and comments next month.