Satyam scam: Bombay HC to give verdict on PriceWaterhouse-SEBI case | business | Hindustan Times
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Satyam scam: Bombay HC to give verdict on PriceWaterhouse-SEBI case

business Updated: Aug 13, 2010 08:52 IST

Bombay High Court is expected to dictate the ruling in SEBI and PriceWaterhouse (PWC) case on August 13. The matter raises the question whether Securities And Exchange Board of India (SEBI) can hold inquiry against PWC, which is an international auditors' firm.

Arguments in the case concluded on August 11 and division bench of Justices P B Majmudar and R M Savant said it would dictate the order in the open court on Friday.

SEBI had issued a showcause notice to PWC in the aftermath of Satyam scam, as latter was associated with Satyam for several years, and its alleged role in concealing the scam had come under scrutiny.

PWC then moved Bombay High Court, saying that SEBI being a stock market regulator has no jurisdiction to issue showcause notice to auditors' firm. Only a body such as Institute of Chartered Accountants of India can do this, it contends.

On the other hand, SEBI says that auditors have "direct, fiduciary" relationship with shareholders and shareholders incurred losses due to decisions based on Satyam's balance sheet. Sebi had issued the show cause notice to PWC under Fraudulent and Unfair Trade Practises (FUTP) regulations.