Provisions of section 11(2) of SEBI Act would take within its sweep a Chartered

 

Provisions of section 11(2) of SEBI Act would take within its sweep a Chartered Accountant if his activities are detrimental to interest of investors or securities market

Looking to the provisions of the SEBI Act and the Regulations framed thereunder, it cannot be said that in a given case if there is material against any Chartered Accountant to the effect that he was instrumental in preparing false and fabricated accounts, the SEBI has absolutely no power to take any remedial or preventive measures in such a case; it cannot be said that the SEBI cannot give appropriate directions in safeguarding the interest of the investors of a listed company


It is true, that the SEBI cannot regulate the profession of Chartered Accountants; it is required to be noted that by taking remedial and preventive measures in the interest of investors and for regulating the securities market, if any steps are taken by the SEBI, it can never be said that it is regulating the profession of the Chartered Accountants


[2010] 6 taxmann.com 129 (Mum.)

HIGH COURT OF BOMBAY

Price Waterhouse & Co.

v.

SEBI

W.P.No.5249 of 2010

WITH

W.P.No.5256 of 2010

August 13, 2010